In this article, the authors use the MicroStrategy case to demonstrate how firms sometimes adopt an aggressive revenue recognition strategy in their eagerness to show improved firm performance. Though such a strategy may provide a higher short-run market valuation for the firm, it often has negative consequences in the longer term. MicroStrategy's regulatory problems stemmed from the new Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 101 (SAB 101), issued in December 1999. The Bulletin was meant to provide guidance for accounting professionals to improve their financial reporting. Adherence to SAB 101 guidelines should result in more conservative revenue recognition practices and will provide investors with a more accurate picture of company performance.