What effect did Microsoft's revenue recognition policy have on its financial statements? Ignore any potential tax effects.
Question:
a. Estimate the amount of revenue that Microsoft would have been reported in each year from 1996 through 1999 if Microsoft had not adopted its new revenue recognition policy in1996.
b. Why do you think Microsoft decided to defer a portion of its revenues in fiscal 1996?
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a b The companys decision to defer revenues came at a time of significant growth in revenues x sugge...View the full answer
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