Revenue from Installment Sales Is Recognized in the Period Received

question 35

Multiple Choice

Revenue from installment sales is recognized in the period received for tax purposes and recognized in the period earned for accounting purposes.If these periods are different, this is an example of a

• A)permanent difference that gives rise to interperiod tax allocation
• B)permanent difference that does not give rise to interperiod tax allocation
• C)temporary difference that gives rise to interperiod tax allocation
• D)temporary difference that does not give rise to interperiod tax allocation

---

Definitions:

Liability

An obligation or debt owed by an individual or company, typically financial, that arises from past transactions or actions.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, which allows for the assets of the debtor to be measured and evaluated, and the liabilities to be discharged or restructured under the protection of bankruptcy court.

Loan Agreement

A contract between a borrower and a lender outlining the terms and conditions of a loan.

Bankruptcy Defense

Strategies or legal arguments used by a defendant in litigation to counter claims made in the context of a bankruptcy case.