The Following Footnote Appeared in a Recent Annual Report to Stockholders

question 74

Essay

The following footnote appeared in a recent annual report to stockholders of Sprint Corporation: "Certain Wireless activation fees associated with unbundled sales continue to be deferred and amortized over the average life of the subscriber. Certain Local installation fees are deferred and amortized over the average life of the customer."
Briefly explain why Sprint recognizes this type of revenue as it does.

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Definitions:

Descartes's Dualism

A philosophical stance proposed by René Descartes that separates the mind and the body as two fundamentally different substances that interact with each other.

Biological Activity

Refers to the effects of a substance on living organisms, including any biochemical interactions.

Nature/nurture Debate

Debate concerning the relative importance of an individual's innate qualities versus personal experiences in determining or causing differences in physical and behavioral traits.

Biological Factors

Aspects of biology that affect behaviors, health, and development, including genetics, brain chemistry, and physical health.