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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The Answer of 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.

The Following Footnote Appeared in a Recent Annual Report to Stockholders