Companies engaged in manufacturing more and more so that competition in companies engaged in manufacturing is increasingly tight. A company must improve marketing and services in order to be able to attract consumers to be able to continue to survive and advance in the competition. Even at this moment has a lot of manufacturing companies that work together with third parties are the banks, which the banks as financial institutions that provide services to consumers through credit payments. Moreover, the benefits for manufacturers of payments on credit is to reduce the risk of sales made in installments. If the manufacturing company as the seller is able to finance the company usually uses the method without payment in installment sales credit, consequently there are differences in revenue recognition.
The recognition of income on installment sales method is often referred to as deferred income, while the income is usually calculated at the time the transaction is completed , Because revenue is the lifeblood of the company. Companies can calculate the profit from the difference between revenues and expenses.
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