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To: babble-on

It is payment for a service or product that has not been delivered yet. A good example is if you pay me per storm ahead of time to snow plow your parking lot. The income geets deferred until it snows, then when I plow that part of the payment becomes income that year.

An even simpler example is when you buy a gift card...the retailer defers the income until the gift card is used.

I remember years ago Best Buy tried to claim a huge increase in revenue to boost the stock price, but the analysts were all over it fast because so much of the revenue was gift cards; in fact the analysts at the time claimed that as much as 15% of the revenue from the gift cards would never be claimed as income because so many gift cards died in a drawer and were never used.


42 posted on 03/19/2017 8:11:48 PM PDT by MaxistheBest (...)
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To: MaxistheBest

I have a feeling Trump will not let this go so easily, especially after the grief he has taken over his taxes. Hell, this is enough money to pay for 2 Virginia class subs or almost half the Wall!!


45 posted on 03/19/2017 8:14:04 PM PDT by MaxistheBest (...)
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