Question: E 5 . 2 0 Revenue Recognition: Software Service Contracts. CA Technologies is a software company that designs, develops, installs, and services business software for
E Revenue Recognition: Software Service Contracts. CA Technologies is a software company that
designs, develops, installs, and services business software for manufacturing companies. Typically, CA Tech
nologies provides its services over a multiyear period. Should the revenue from selling, installing, and sup
porting the software be recognized all together or separately? Also, should the revenues be recognized all at
once or over time?
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