When preparing a Consolidated Statement of income, inter-company transactions are cancelled. Which one or more of the

Question:

When preparing a Consolidated Statement of income, inter-company transactions are cancelled. Which one or more of the following would you say is the reason for this step?

(a) That is how it is expected to be done

(b) Otherwise group earnings can be inflated by one within the group earning from another

(d) Failure to do so would be bad for the group image

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

See More Books

Question Posted: Aug 29, 2023 10:26 AM

See More Questions

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
Suppose that there are two countries, A and B, and two goods, X and Y. Country A has a production possibility frontier (PPF) that is given by the equation X + Y = 100, while country B has a PPF that...
Provide a brief explanation of the conceptual relationship between improvements in quality and improvements in financial performance.
In a factor model, what is meant by isolated tracking error?
The Fourth Amendment prohibits searches without a reasonable suspicion to justify them. When an individual is arrested, law enforcement officers routinely fingerprint and photograph prisoners for...
Potter's Home Goods sells furniture and electronic items. The majority of its business is on credit, and the following information is available relating to sales transactions for 2010, 2011, and...
a) Market refers to the mechanism through which all goods and services are voluntarily exchanged among different owners. Through price, markets allocate scarce resources among competing uses. Discuss...
Though a subsidiary is only partly owned, the whole of the subsidiarys sales, cost of sales and expenses are aggregated with those of the parent to report the groups income and expenses. Which one or...
With regard to preparing a Consolidated Income statement which of the following statements are correct? (a) Only the group portion of subsidiarys sales, cost of sales and expenses are included (b)...
Under competitive conditions, why can market price not be higher or lower than the price established by the free market forces of demand and supply?
(a) Let A = {1,2,3,4}, B = {3kk e Z-{-1,1}} and C = {ne Zn+n = 0}. Which one of the following statements is True? Explain your answer i. AnB = 0 ii. B-C=0 iii. BnC = 0 iv. AUC =0 (b) Let A and B be...
Consider the following scenario when answering the next two questions: Ivett and Desiree are considering playing a game called Matching Fifties. In this game, Ivett and Desiree will each place a $50...
1. Given the following code: 1 int g (int x, int y) { switch(x - y) { case 0: 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 } return x; case 4: y = y + 1; break; case 7: x = x - 1; case 9: return x*y;...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:...
You stand 17.5 m from a wall holding a rock. You throw the rock at the wall at an angle of 22.5 degrees from the ground with an initial speed of 20.5 m/s. At what height y above its initial position...
Weaver Corporation had the following stock issued and outstanding at January 1, 2016: 1. 150,000 shares of $1 par common stock. 2. 15,000 shares of $100 par, 6 percent, noncumulative preferred stock....
Find the intercepts and then graph the line. (a) 2x - 3y = 6 (b) 10 - 5x = 2y
The following activities and costs are for Collins Company. 1. Direct materials used by workers to assemble products 2. Factory building rent 3. Machines set up to produce groups of products 4. New...
Why do managers allocate overhead costs to products?
Describe the three methods of allocating overhead costs.
What are the four primary functions of an administrative agency? Explain which of those functions you would give your newly-formed agency. How would you give the agency the necessary authorities? If...
Pete contracts to sell Jill 100 widgets. The 100 widgets are located at Pete's business. The contract does not state a place of delivery. The place of delivery is: Jill's place of business. Jill's...
What are the various types of agency principles of business entity. How this requires a thorough discussion of the principal/agent relationships

When preparing a Consolidated Statement of income, inter-company transactions are cancelled. Which one or more of the

Question:

wb & d x b & c ya & c Zc & d C N

Step by Step Answer:

x b Otherwise group earnings can ...View the full answer

Financial Accounting An Introduction

Students also viewed these Business questions