Healthy Pools Incorporated, an S Corporation, Operates a Swimming Pool

question 20

True/False

Healthy Pools Incorporated, an S corporation, operates a swimming pool business.It has successfully acquired many of the hotels and motels in the area as customers.It bills monthly for its services.Assuming the corporation wishes to use the accrual method to account for its billings, it must also use the accrual method to account for all other receipts and disbursements.

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Definitions:

Conditional Sales Agreement

A sales contract in which the buyer takes possession of the item immediately but does not gain ownership until the full price is paid.

Equity Of Redemption

The equitable right of a mortgagor to acquire the title to the mortgaged property by payment of the debt secured by the mortgage.

Arrears

A state of being behind in fulfilling obligations, such as payments on a loan, rent, or utilities.

Purchaser

An individual or entity that buys goods or services from a seller.