The deferred gross profit on installment sales is reported on the balance sheet as a
A)current asset
B)current liability
C)contra-asset
D)long-term liability

Name: The deferred gross profit on installment sales is reported on the balance sheet as a A)current asset B)current liability C)contra-asset D)long-term liability
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Question

Quizplus · Accepted Answer

Deferred gross profit on installment sales is reported as a contra-asset because it reduces the accounts receivable balance on the balance sheet.

The Deferred Gross Profit on Installment Sales Is Reported on the Balance