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Topic: |
Business
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Number of pages / Number of words: |
6 / 1415 |
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Losses, however, are recognized in the year they are forecast in this method (Revenue Recognition).
2. Installment (Sales) method recognizes revenue when cash is collected as payments are received from the customer. When each payment is received from the customer, a portion of the gross profit on the sale is recognized so that by the final payment the entire gross profit is recorded (Revenue Recognition)...
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Percentage-Of-Completion method. This method allows business with long-term contracts to show that it is generating revenue even though the project is not yet completed. The company will use the percentage of completion method if two conditions are met (a) there is a long term legally enforceable contract, and (b) it is possible to estimate the percentage of the project complete, revenues, and costs...
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