Which of the Following May Qualify as an Installment Sale

question 34

Multiple Choice

Which of the following may qualify as an installment sale?

• A)Sale of inventory at a gain.
• B)Sale of securities.
• C)Sale of asset used in a business at a gain.
• D)Land sold at a loss.
• E)All of the choices qualify for installment sale treatment.

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Definitions:

Check Outstanding

A check that has been written and recorded in the issuing account but has not yet been cleared or cashed by the bank.

Bank Reconciliation

The process of comparing and adjusting the balance shown on a bank statement with the amount shown in a company’s records to ensure they match.

Internal Control

Procedures and policies implemented by a company to safeguard its assets, ensure accurate and reliable financial reporting, and comply with laws and regulations.

Cash

Liquid assets that a company or individual has available for transactions.