Basic Concepts Of Revenue Recognition - Installment Method

Posted by Ana Orwel on Tuesday, April 21, 2009

There are several basic concepts of revenue recognition and one of them is Installment Method applied to recognize revenue in accounting books of the business.

The essence of this method is that revenue is recognized based on the installment which are being paid for the goods sold, where the seller retains ownership title to the goods till all the payments for them are received from the customer.

Explore practical example and essence of one of basic concepts of revenue recongnition - Installment Method.