GAAP requires that the interest component of the periodic cash flows from installment sales be recorded separately.

Name: GAAP requires that the interest component of the periodic cash flows from installment sales be recorded separately.
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Question

Quizplus · Accepted Answer

GAAP (Generally Accepted Accounting Principles) requires that the interest component of the periodic cash flows from installment sales be recorded separately to ensure accurate reporting of both the revenue and interest earned.

GAAP Requires That the Interest Component of the Periodic Cash