1. Realized profit in beginning inventory will decrease cost of sales but will increase consolidated net income.

Group of answer choices

True

False

2. Realized profit in ending inventory will increase cost of sales but will decrease consolidated retained earnings.

Group of answer choices

True

False

3.Failure to eliminate realized profit in beginning inventory would overstate cost of sales.

Group of answer choices

True

False

4.Failure to eliminate unrealized profit in ending inventory would understate cost of sales and ending inventory.

Group of answer choices

True

False

5.The working paper elimination entry for intercompany sale and purchases of inventory during the year is to debit sales and credit cost of sales at selling price and not based on the cost of inventory.

Group of answer choices

True

False

6.The working paper elimination entry for the realized profit in beginning inventory is to debit cost of sales.

Group of answer choices

True

False

7.Gain on bargain purchase increases in consolidated net income, consolidated shareholders' equity and non-controlling interest.

Group of answer choices

True

False