Future delivery of products and services


On June 30, 2000, Microsoft Corporation was holding $4.8 billion of cash that it had collected from customers in advance for future software licenses and the future delivery of other products and services. In its financial statements, Microsoft classified and recorded this amount as:

a) part of revenue on its income statement.

b) the asset Accounts Receivable on its balance sheet.

c) the liability Unearned Revenue on its balance sheet.

d) an expense on its income statement.

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Accounting Basics: Future delivery of products and services
Reference No:- TGS041231

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