The realization of income on installment sales transactions involves
A) recognition of the difference between the cash collected on installment sales and the cash expenses incurred.
B) deferring the net income related to installment sales and recognizing the income as cash is collected.
C) deferring gross profit while recognizing operating or financial expenses in the period incurred.
D) deferring gross profit and all additional expenses related to installment sales until cash is ultimately collected.

Question

Quizplus · Accepted Answer

The Answer of The realization of income on installment sales transactions involves
A) recognition of the difference between the cash collected on installment sales and the cash expenses incurred.
B) deferring the net income related to installment sales and recognizing the income as cash is collected.
C) deferring gross profit while recognizing operating or financial expenses in the period incurred.
D) deferring gross profit and all additional expenses related to installment sales until cash is ultimately collected.

The Realization of Income on Installment Sales Transactions Involves