The transaction price is only allocated to goods or services that are both capable of being distinct and that are separately identifiable.

Question

Quizplus · Accepted Answer

This statement is in accordance with the principles outlined in ASC 606, which states that a good or service must meet both the "distinct" and "separately identifiable" criteria in order to be accounted for separately and allocated a portion of the transaction price.

The Transaction Price Is Only Allocated to Goods or Services