Authoritative Guidance on Bundled (Multiple-Element)software Sales Transactions States That If

question 102

True/False

Authoritative guidance on bundled (multiple-element)software sales transactions states that if a software sales arrangement includes multiple,distinct elements,the revenue from the arrangement should be allocated to the various elements based on prevailing industry practices.

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Definitions:

Financing Activities

Transactions related to raising funds or repaying borrowed funds, as reported in the statement of cash flows.

Financing Activities

Transactions a company undertakes to fund its operations and expansions, such as issuing equity or taking on loans.

Indirect Method

A way of calculating cash flows from operating activities by starting with net income and adjusting for changes in non-cash accounts.

Cash Flows

The total amount of money being transferred into and out of a business, particularly affecting liquidity, investment, and operating activities.