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  2. Installment sales method - Wikipedia

    en.wikipedia.org/wiki/Installment_Sales_Method

    The deferred gross profit is an A/R contra-account and is the difference between gross profit and recognized income and is calculated as follows: $360,000 − $90,000 = $270,000. The deferred gross profit is thus deferred and recognized in income in subsequent periods, i.e. when the installment receivables are collected in cash.

  3. Percentage-of-completion method - Wikipedia

    en.wikipedia.org/wiki/Percentage-of-Completion...

    Revenues and gross profit are recognized each period based on the construction progress, in other words, the percentage of completion. Construction costs plus gross profit earned to date are accumulated in an asset account (construction in process, also called construction in progress), and progress billings are accumulated in a liability account (billing on construction in process).

  4. Revenue recognition - Wikipedia

    en.wikipedia.org/wiki/Revenue_recognition

    For example, if a company collected 45% of total product price, it can recognize 45% of total profit on that product. Cost recovery method is used when there is an extremely high probability of uncollectable payments. Under this method no profit is recognized until cash collections exceed the seller's cost of the merchandise sold.

  5. Basis of accounting - Wikipedia

    en.wikipedia.org/wiki/Basis_of_accounting

    For financial accounting purposes, accrual accounting generally follows the principle that revenue cannot be recognized until it is earned, even if payment has been received in advance. [7] The specifics of accrual accounting can vary across jurisdictions, though the overarching principle of recognizing revenue and expenses when they are earned ...

  6. Unit price - Wikipedia

    en.wikipedia.org/wiki/Unit_price

    A product's average price is the result of dividing the product's total sales revenue by the total units sold. When one product is sold in variants, such as bottle sizes, managers must define "comparable" units. Average prices can be calculated by weighting different unit selling prices by the percentage of unit sales (mix) for each product ...

  7. Generally Accepted Accounting Principles (United States)

    en.wikipedia.org/wiki/Generally_Accepted...

    Expenses are recognized not when the work is performed, or when a product is produced, but when the work or the product actually makes its contribution to revenue. Only if no connection with revenue can be established may cost be charged as expenses to the current period (e.g., office salaries and other administrative expenses).

  8. Gross margin return on inventory investment - Wikipedia

    en.wikipedia.org/wiki/Gross_margin_return_on...

    In business, Gross Margin Return on Inventory Investment (GMROII, also GMROI) [1] is a ratio which expresses a seller's return on each unit of currency spent on inventory.It is one way to determine how profitable the seller's inventory is, and describes the relationship between the profit earned from total sales, and the amount invested in the inventory sold.

  9. Adjusted RevPAR - Wikipedia

    en.wikipedia.org/wiki/Adjusted_RevPAR

    Adjusted RevPAR (or ARPAR, adjusted revenue per available room), is a performance metric used in the hospitality industry.It is calculated by dividing the variable net revenues of a property by the total available rooms (see more formulas below).