How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 488.13

-0.8%

11:23 AM EST

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To: Zanga56 who wrote (14527)	1/18/1999 9:22:00 PM
From: Exacctnt	Read Replies (1) of 74651

Zanga, <<<The unearned revenue is a pool of funds that at the end of last quarter was at 3.1 billion. Every qtr they put in money and they use some of the money. the net affect is that at the end of the qtr it stood at 3.1 Billion. >>> Just so there is no misunderstanding, the Unearned Revenue account is a liability on the balance sheet, it is not a pool of funds. Any proceeds collected from Unearned Revenue transactions is applied to the Cash Account. You are correct in saying that there is a net affect in the account. However, the amount that is removed or used from the account is applied to the current income for the period. The net affect to the account is therefore the incremental change for the period. The total $3.1B in the account is cumulative, not incremental. Regards, Bob

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