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Explain the difference between a simulator and a dissembler. Provide an example of each.
Cost Recovery Method
An accounting technique used when the future collectibility of revenue is uncertain, recognizing revenue only when cash payments are received.
Revenue Recognition
An accounting guideline that specifies when revenue should be recognized and recorded.
Installment Sales Method
An accounting method used to recognize revenue from sales when payments are received in installments over a period of time, instead of at the point of sale.
Gross Profit Percentage
A financial metric calculated by dividing the gross profit by net sales, expressed as a percentage to assess a company's financial health and profit margin.
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