Refer to LaGrow Developers

question 58

Multiple Choice

Refer to LaGrow Developers.Assuming that LaGrow uses the installment sales method,in its December 31,2016 balance sheet,the company would report ________.

• A)$3,000,000 net installment account receivable
• B)$4,000,000 net installment account receivable
• C)$2,600,000 net installment account receivable
• D)$5,000,000 net installment account receivable

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Definitions:

Income Statement

A financial statement that reports a company’s financial performance over a specific accounting period, detailing revenues, expenses, and profits.

Current Year

The ongoing year or period that is currently being accounted for or considered, often in contrast to previous or future years.

Stockholders' Equity

Equity interest in a corporation, split into shares and representing ownership in the corporation's assets after liabilities are settled.

Liabilities

Financial obligations or debts that a company owes to others, which can be classified as current (short-term) or non-current (long-term).