When Applying the Installment Sales Method the Accounting System Must

question 31

Multiple Choice

When applying the installment sales method the accounting system must match collections with the specific sales year to which the cash collections relate in order to apply the correct

• A)net profit percentage to accounts receivable.
• B)gross profit percentage to accounts receivable.
• C)net profit percentage to cash receipts.
• D)gross profit percentage to cash receipts.

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Definitions:

Disposition

The inherent qualities of mind and character that influence an individual's behavior and attitudes.

Behaviour

The actions or reactions of an individual or group in response to external or internal stimuli.

Low Distinctiveness

A characteristic or situation that does not strongly stand out from others or is not easily differentiated.

Attribution Theory

A psychological theory that explains how individuals interpret and assign causes to their own and others' behavior.