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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: Exacctnt who wrote (14532)1/18/1999 10:45:00 PM
From: t2  Read Replies (2) | Respond to of 74651
 
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.


Robert, Just to be clear---This unearned revenue account has
no effect in the cash account. The only accounts
affected are the "revenue" and "unearned
revenue".
The cash is recorded as received ---debit cash and
credit accounts receivable. The "unearned revenue" account has nothing
to do with it.

Not a big deal unless you are looking at the company's cash flows.