A Corporation Can Use the Installment Sale Method of Accounting

question 19

True/False

A corporation can use the installment sale method of accounting for both book and tax purposes.

---

Definitions:

Yield To Maturity

The expected total yield on a bond when it's held all the way to its date of maturity.

6 ½% Bond

A type of bond that pays an annual interest rate of six and a half percent to its holders, representing part of the bond's fixed-income return.

8% Bond

A bond that pays an annual interest rate of 8%, representing the fixed income it provides to investors over its term.

8 ½% Bond

A bond that pays an annual interest rate of 8.5%, where the interest payment is made to bondholders as compensation for their investment.