Zoom Financial

 Business Strategy Analysis
(i) Briefly summarize Zoom’s strategy for driving new customer acquisitions.
(ii) List one key success factor and one significant risk associated with Zoom’s strategy for
driving new customer acquisitions.
1. Key success factor
2. Significant risk

Accounting Analysis
(i) Summarize how Zoom recognizes revenue associated with subscription agreements.
(ii) Assume that instead of using its current accounting policies for subscription revenue,
Zoom instead recognized revenue when it has the right to invoice under a subscription
agreement. Estimate the Revenue that Zoom would have reported for the fiscal year
ended January 31, 2021.
(iii) Summarize how Zoom accounts for ‘sales and marketing’ costs.