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ACC 335 Intermediate Accounting

tag 0 Download 2 Pages / 345 Words tag 20-07-2021

Questions:

1.) Locate the financial statements of Microsoft Corporation on the internet. Search the disclosure notes for information about how Microsoft accounts for its unearned revenues. How is the undelivered portion of Microsoft’s sales of Windows XP Professional recorded initially?
2.) Why does the statement of cash flows include "unearned revenue" as an addition to net income in the operations section? Why is "recognition of unearned revenue" included as a deduction from the net income? Why do you think Microsoft reported these two items separately rather than just adjusting net income for the change in the unearned revenue account balance?
3.)Why is stock-based compensation added to net income?
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