The total price recorded on an installment sale agreement includes which of the following?

The total price recorded on an installment sale agreement includes the combination of all charges associated with the purchase, which encompasses not only the cash price of the item itself but also any financing charges, additional fees, and interest costs that may accrue over the duration of the payment plan. This comprehensive approach ensures that the buyer has a clear understanding of the total commitment involved in the purchase, including what will be paid over time.

Effective financial management in installment sales requires transparency about the total obligations, as this impacts decision-making for consumers regarding affordability and budgeting. Consequently, it is crucial that the installment sale agreement presents a full picture of the costs involved. This is why the total of all charges is the correct answer, as it accurately reflects the commitment being made by the buyer.