Which of the Following Statements Is Not True Concerning Installment

question 49

Multiple Choice

Which of the following statements is not true concerning installment reporting?

• A) At least one payment is to be received after the close of the year in which a sale of property is made.
• B) fte installment method allows gain to be spread over more than one year.
• C) fte gross profit rate is used to determine the portion of the payment received that is reported as income.
• D) An advantage of the installment method is that the dollar amount of income recognized from each payment never varies from year to year.

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Definitions:

Alcohol

a colorless, volatile, flammable liquid that is the principal type of alcohol found in alcoholic beverages.

Stimulant

A substance that raises levels of physiological or nervous activity in the body.

Cannabis Use Disorder

A condition characterized by a problematic pattern of cannabis use leading to clinically significant impairment or distress, including a strong desire to use cannabis, difficulty controlling its use, and experiencing withdrawal symptoms.

Marijuana

One of the cannabis drugs, derived from the buds, leaves, and flowering tops of the hemp plant Cannabis sativa.