Viasoft is an excellent stock, but what about the company? Message Board

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Technology Stocks : Viasoft is an excellent stock, but what about the company?

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To: Roger A. Babb who wrote (134)	1/26/1997 11:06:00 AM
From: Philip H. Lee	of 169

>my point is that the revenue increase is due to the increase in deferred revenues.< My point is that the above supposition is impossible. A transaction cannot both increase the Revenue account and increase the Deferred Revenue account at the same time. Deferred Revenue is increased first when compensation is received in advance of future work to be done. As work gets done, the Deferred Revenue account is decreased and the Revenue account in increased. Deferred Revenue is like a backlog, except you've already received compensation. Philip Warning: The accounting can get confusing, and I could be wrong. I am not a professionally certified accountant (yet).

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