The Installment Method May Be Used for Sales of All

question 86

Multiple Choice

The installment method may be used for sales of all kinds of property with the exception of

• A)real property.
• B)personal property.
• C)capital assets.
• D)marketable securities.

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Definitions:

Incapacitation

A state of being unable to act or make legal decisions due to physical or mental limitations.

Undisclosed Principal

A principal whose existence is not known by a third party. That is, the third party does not know that an agent is acting on behalf of a principal.

Agent

An individual or entity authorized to act on behalf of another (known as the principal) in dealings with third parties, creating a legal relationship called agency.

Authority

The power or right to give orders, make decisions, and enforce obedience, or a person or organization having such power.