All experiments
Labs
The two-clock experiment
Cash arrives on day one. Revenue takes its time.
Live experiment
The two-clock experiment
Revenue earned so far300
Before you move a sliderAfter three months, how much of a prepaid annual contract has been earned?
Revenue = 1200 × 3 ÷ 12 = 300
Read the mechanism
Moving time changes how much has been earned and how much service is still owed. It never collects the cash a second time. At the end of the term the obligation is zero and every dollar has become revenue.
Model assumptions and units
An evenly delivered service, paid fully in advance, with no refunds or variable pricing. Revenue is capped at the contract term. Real recognition follows the specific performance obligations in the contract.