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

To: Zanga56 who wrote (17750)	3/11/1999 6:57:00 PM
From: blankmind	Read Replies (1) \| Respond to of 74651

$400 mill in unearned revenue explained... from a CPA: #1 - Don't recognize revenue until the sales cycle is completed #2 - if you give out coupons for free upgrade; then technically speaking, under GAAP, the sales cycle isn't complete #3 - in the 4Q98, when the product is released & teh coupons are exercisable, then you can recognize the income. - so Zanga; you're basically right. MSFT takes in the $400 mill in cash. Pockets the money. And adds it to next quarter's income.