Answer: Identify the contract with the customer

The correct answer is **B** because identifying the contract with the customer is the first of five steps in recognizing revenue under the converged accounting standards for revenue recognition. The steps are as follows: 1. **Identify the contract(s) with a customer** 2. Identify the separate or distinct performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligation. Option A is incorrect as it represents the third step, and Option C is incorrect as it represents the second step.

Author: LeetQuiz Editorial Team