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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Sector Investor who wrote (31878)	1/23/1998 5:00:00 PM
From: H. Wai	Read Replies (3) \| Respond to of 61433

Sector, What does A/R stand for? Also, do you know who is the other Ascend's customer who counted for more than 10% of Ascend's revenue last quarter beside UUnet? Thanks. H.Wai

To: Sector Investor who wrote (31878)	1/23/1998 5:32:00 PM
From: Lockhart	Read Replies (2) \| Respond to of 61433

Re "deferred revenue going forward as indicated by AR..." AR is not deferred revenue. AR is sale which have ocurred and are reprted on the most recent income statement. They have simply not been collected. These are indicated on the purchasers balance sheet as payables. Likewise the payables for ASND are purchases thay made which have nor been paid for but are reported on someone elses income statement as sales, and on their balance sheet as AR. AR are from historic sales, not pending or unreported sales.

To: Sector Investor who wrote (31878)	1/23/1998 7:42:00 PM
From: Daniel W. Koehler	Read Replies (3) \| Respond to of 61433

Sector Under accrual accounting, the A/R are booked as revenue when sales are booked but the cash has not yet been received. When the cash comes in, the A/R balance is reduced. A/R's are not reservoirs of deferred income. Deferred income is a balance sheet liability that generally occurs when goods are shipped but not taken into income until the sale/earnings process is finally completed.. IMO, Maverick's statement would be true if the deferred income balance were increasing, but not A/R Am I missing something here? I got my CPA in 1976 but haven't practiced in a while. Daniel