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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (30441)	8/25/2000 6:03:52 AM
From: Brent Hogenson	Read Replies (2) \| Respond to of 54805

Hi Mike, If the dollars show up in accounts receivable, it does not always mean that they also show up in revenue. Many software companies have the right to invoice customers for items that they currently do not recognize as revenue. The offset is a liability account generally called deferred revenue. This could be for Maint., Source Code where updates are available in the future or prepaid royalties where future demand is not always supported. Generally prepaid revenue is not recognized immediately unless the prepaid amount is covered by expected demand ranging from 3 to 12 months depending upon the company. Back to the darkness, Brent