Question

The key accounting issue related to bundled (multiple-element) sales transactions is the amount of revenue to be recognized over the contract.
True / False.

Answer 1

Answer:

The correct answer is False.

Explanation:

The key accounting issue related to bundled (multiple-element) sales transactions  is the timing of revenue recognition.

The fundamental principle is that an entity recognizes revenue to reflect the transfer of goods or services committed to customers for an amount that reflects the consideration to which the entity expects to be entitled in exchange for such goods or services.