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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium

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To: cabernetfranck who wrote (67632)1/26/2000 6:04:00 PM
From: WhatsUpWithThat  Read Replies (1) of 108040
 
They get paid often before they pay their suppliers; that's one of their successes, managing their cash flow. But in accounting terms, income statement terms, payment and revenue recognition aren't equal: you can get paid in advance but not be able to recognize revenue until GAAP says you can. The money sits on your balance sheet as a liability, in essence, a debt you owe, to offset the cash asset....cause if you never ship the product, you have to send back the cash, right?

WUWT
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