The difference between realized gross profit and deferred gross profit on installment sales is based on the cash collections related to the installment sales.

Question

Quizplus · Accepted Answer

The difference arises because realized gross profit is recognized based on the cash collections from installment sales, while deferred gross profit represents the portion of gross profit not yet recognized, awaiting future cash collections.

The Difference Between Realized Gross Profit and Deferred Gross Profit