Final answer:
A multiple deliverable arrangement is a contract where a company provides two or more distinct products or services to a customer. The major accounting issue related to these arrangements is the proper allocation of revenue to each deliverable.
Step-by-step explanation:
A multiple deliverable arrangement refers to a contract where a company provides two or more distinct products or services to a customer. These arrangements are common in industries such as software and telecommunications, where companies often bundle different offerings together.
The major accounting issue related to multiple deliverable arrangements is the proper allocation of revenue to each deliverable. The company needs to determine the standalone selling price for each product or service and allocate the total transaction price accordingly. This requires careful analysis and judgment, as the allocation affects the recognition of revenue and financial reporting.