1) What is the difference between a traditional sale on account and a sale on installmenta) There is no difference – both are still a sale.b) A sale on account requires multiple payments over time, whereas a sale on installment is generally only one payment at a future date.c) Most sales on installment involve the customer being charged interest.d) Payment is required in periodic amounts over an extended period of time.e) c and df) a, c and d

Traditional sale on account requires single payment, whereas sale on installment require multiple…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1) What is the difference between a traditional sale on account and a sale on installment

a) There is no difference – both are still a sale.
b) A sale on account requires multiple payments over time, whereas a sale on installment is generally only one payment at a future date.
c) Most sales on installment involve the customer being charged interest.
d) Payment is required in periodic amounts over an extended period of time.
e) c and d
f) a, c and d

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