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Microsoft Sells Its Corporate Customers Large Computer Systems That Include

Question 155

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Microsoft sells its corporate customers large computer systems that include a three-year service contract.Microsoft promises that for three years it will update the systems whenever the customers need modifications and that it will also provide extensive customer support.Microsoft has chosen to recognize all revenue for these systems over the three-year life of the service contracts rather than when the systems are installed.Microsoft's accounting choice would be considered ________.


A) conservative
B) fundamental
C) basic
D) aggressive

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