The consolidation procedures for intercompany sales are similar for upstream and downstreams sales a. Under a periodic inventory system but not under a perpetual inventory system b. If the merchandise is transferred at cost c. If the merchandise is immediately sold to outside parties d. When the subsidiary is 100% owned.
The consolidation procedures for intercompany sales are similar for upstream and downstreams sales a. Under a periodic inventory system but not under a perpetual inventory system b. If the merchandise is transferred at cost c. If the merchandise is immediately sold to outside parties d. When the subsidiary is 100% owned.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The consolidation procedures for intercompany sales are similar for upstream and downstreams sales
a. Under a periodic inventory system but not under a perpetual inventory system
b. If the merchandise is transferred at cost
c. If the merchandise is immediately sold to outside parties
d. When the subsidiary is 100% owned.
Sales from one subsidiary to another are called
a. Downstream sales
b. Inter subsidiary sales
c. Horizontal sales
d. Upstream sales
Non-controlling interest in consolidated income is never affected by
a. Sale of Parent to unaffiliated company
b. Downstream sales
c. Upstream Sales
d. Non-controlling interest is affected by all sales
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