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Installment method definition

Accounting Tools

The primary circumstance under which the installment method is used is a transaction in which the buyer makes a number of periodic payments to the seller, and it is not possible to determine the collectability of cash from the customer. Calculate the gross profit rate for installment sales occurring in that year.

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The difference between the direct and indirect cash flow methods

Accounting Tools

Related Courses The Interpretation of Financial Statements The Statement of Cash Flows What is the Direct Method? Under the direct method, actual cash flows are presented for items that affect cash flow. What is the Indirect Method?