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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Charles Tutt who wrote (33663)	7/19/2000 1:33:19 PM
From: Charles Tutt	Read Replies (1) \| Respond to of 64865

FWIW, I also think the Visa news could be huge.

To: Charles Tutt who wrote (33663)	7/19/2000 3:03:31 PM
From: JDN	Read Replies (1) \| Respond to of 64865

Dear Charles: I am having difficulty understanding the crux of the question. I did click on each of the messages you indicated but not on the URL's within those messages. I am operating today at 16,800k so really cant fly around the web. However, I will answer the question in General regarding Unearned Revenue. FIRST. Unearned Revenue is derived from the original sale (ie the product HAS been shipped and it is NOT set up as some kind of charge to operations--these are some of the comments I saw in those posts) SECOND. HOWEVER, some ADDITIONAL service must be performed or other condition such that the Revenue cannot presently be RECOGNIZED as INCOME, but rather is set up on the balance sheet as a deferred liability account ie Deferred Revenue until that condition or service required has been performed at which time it is THEN recognized as INCOME. Just think of the concept of matching Revenue to related Costs. That is what this is all about. If there are costs left to incur then a related portion of the revenue must be deferred. JDN