Installment Method Definition

You are seeing definition of Installment Method in Business Terms Dictionary

Maybe this is not completely definition of Installment Method but this is the best definition of Installment Method at this time that we found. In future, this definition of Installment Method can be modified, please visit our Business Terms Dictionary more frequently to get latest information.

Home » Business Terms Dictionary » Installment Method

Definition Of Installment Method:

installment method The accounting method of treating revenue from the sale of an asset on installments such that profits are recognized in proportion to the percentage of the sale price collected in a given accounting period.
For example, if an asset with a book value of $12,000 is sold for $15,000 and payment is to occur in 5 equal installments of $3,000 each, the seller would record annual profits of ($15,000 - $12,000)/5 , or $600. The installment method is a conservative way of treating an installment sale because profit is not recognized until receipt of payment.

Other Definition Of Business Terms:

For your more easier in looking up our business terms dictionary, we classified definitions of business terms in several types. Please select one type below:
Inventory Accounting | General Accounting | Business Accounting | Tax Accounting | Purchase Accounting | Salary Accounting | All Types

Thank you for visiting Business Dictionary website. We are conituning to upadate more Business terms to Business Dictionary. Please visit this website usually to get new Business definitions. We also provide some more dictionaries, you can find out as below:
Medical Dictionary | Law Dictionary | Legal Dictionary | Business Dictionary | Financial Dictionary | Computer Dictionary | Slang Dictionary