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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD

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To: Randy Ellingson who wrote (2779)1/13/1999 8:03:00 PM
From: Len White  Read Replies (1) of 3115
 
I thought I saw someone at TMF mention them as a liability. Can anyone clarify the significance of deferred revs?

Deferred Revenue is essentially prepaid sales. To recognize it as a liability instead of sales in the current period is conservative accounting. Depending on its composition, it can be an indicator of how well the new quarter will be starting off.
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