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Articles on Trending Technologies
Technical articles with clear explanations and examples
What is an Installment Sale?
As the name suggests, an "installment sale" is an approach where the seller allows the buyer to make payments in installments over a period of time. It is a Revenue Recognition method in which the seller defers the revenues until the payment is received.In an Installment Sale, the revenues and the expenses are recognized at the time when the actual cash flow occurs, rather than at the time of sale. Installment Sales are quite prevalent in real-estate deals.Note that, although the buyer gets the goods at the beginning of the installment period, the ownership is not fully transferred at the ...
Read MoreWhat is the Revenue Recognition Principle?
Most of the big companies do business on credit. They supply goods and services for which the payments are received at a later stage or over a period of time. Hence, it becomes important for companies to follow a standard process to recognize the revenue from such transactions and record them in their financial statements.There are multiple stages at which a company can recognize the revenues in its books.Revenue Recognition CriteriaAccording to the International Financial Reporting Standards, the following conditions must be satisfied to have a company recognize its revenues −There should be sufficient assurance that the payment will be ...
Read MoreWhat is Accrual Principle in Accounting?
The Accrual Principle is a concept in Accounting where the financial transactions are recorded during the same time period in which they occur. Note that the actual cash flow may occur at a later stage. For example, suppose a company supplies goods worth $50, 000 in the first quarter of financial year, but the company receives the payment in the second quarter. In such a case, if we apply the Accrual Principle, then the company will record this financial transaction in its books in the first quarter itself.The Accrual Principle is useful when it is important to match the revenues ...
Read MoreWhat is Value-Based Pricing?
Cost-Plus Pricing Vs Value-Based PricingIn general, companies calculate the selling price of a product or service based on the costs incurred in manufacturing that product or delivering that service. This is what we call Cost-Plus Pricing strategy where the price of a product is proportional to the manufacturing cost.We very well understand that a superior brand can charge slightly more for a product than a less-known company that produces the same product, which is the usual case. There's a brand value attached to products that belong to a superior brand. In such cases, the price difference between the products do ...
Read MoreWhat is Marginal Benefit?
We can define Marginal Benefit as the maximum amount a buyer can pay for an extra unit of product purchased after the first unit. Consumers normally tend to compare the marginal cost of purchasing an extra unit with the marginal benefit derived from purchasing it. In other words, we can also define Marginal Benefit as the satisfaction that a consumer gets after purchasing an extra unit. It is also known as marginal utility.How Do Companies Use Marginal Benefit?Marginal Benefit is a valuable tool that is heavily used in business market research and advertising. Companies evaluate marginal benefits and use that ...
Read MoreHow to fill missing values after merging the data frames with another value than NA in R?
To fill missing values after merging the data frames with another value than NA in R, we can follow the below steps −First of all, create two data frames.Then, merge the data frames by a common column between the two.After that, replace the NAs with another value.ExampleCreate the first data frameLet’s create a data frame as shown below −ID
Read MoreHow to use top_n function from dplyr to extract rows based on one column ordered in descending order in R?
To use top_n function from dplyr to extract rows based on one column ordered indescending order in R, we can follow the below steps −First of all, create a data frame.Then, use top_n function dplyr package along with arrange and desc function to extract rows based on one column ordered in descending order.ExampleCreate the data frameLet’s create a data frame as shown below −x
Read MoreHow to create quantile regression plot with larger width of lines using ggplot2 in R?
To create quantile regression plot with larger width of lines using ggplot2 in R, we can follow the below steps −First of all, create a data frame.Then, use stat_quantile function with size argument and geom_point function of ggplot2 package to create quantile regression plot.ExampleCreate the data frameLet’s create a data frame as shown below −x
Read MoreHow to remove a row from matrix in R by using its name?
To remove a row from matrix in R by using its name, we can follow the below steps −First of all, create a matrix.Then, add names to rows of the matrix.After that, subset the matrix by deselecting the desired row with negation and single square brackets for subsetting.ExampleCreate the matrixLet’s create a matrix as shown below −M
Read MoreHow to remove a column from matrix in R by using its name?
To remove a column from matrix in R by using its name, we can follow the below steps −First of all, create a matrixThen, add names to columns of the matrix.After that, subset the matrix by deselecting the desired column with negation and single square brackets for subsetting.ExampleCreate the matrixLet’s create a matrix as shown below −M
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