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Technology Stocks : Siebel Systems (SEBL) - strong buy?
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To: Melissa McAuliffe who wrote (1972)7/25/1998 9:50:00 AM
From: SWF-Steve  Read Replies (1) of 6974
 
I am not an accountant, so please help me understand.

Deferred revenue is an asset? SEBL sells a customer a package and receives 20% up front. They book the 20% as a sale (revenue). They then book the balance (80%) as deferred revenue?

Isn't the 80% simply 'backlog' and, as such, shouldn't even be addressed on the balance sheet?

DSO relates to receivables. Since the 80% hasn't been invoiced, it isn't a receivable, right?

So, I'm not getting how extended DSO's and deferred revenue(?) relate, let alone cancel each other out.

Again, your help is appreciated.

Thank you.
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