Why are intercompany items eliminated from consolidated financial statements? Name two intercompany items that are eliminated.

Question:

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

Step by Step Answer:

Related Book For answer-question

Accounting

ISBN: 978-0132690089

9th Canadian Edition volume 2

Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

See More Books

Question Posted: Dec 21, 2016 10:32 AM

See More Questions

Why must intercompany receivables and payables be eliminated when consolidated financial statements are prepared?
Why must we eliminate intercompany transactions when preparing consolidated financial statements?
The financial effects of intercompany transactions are eliminated in consolidated financial statements. This helps insure that the statements reflect only assets, liabilities, revenues and expenses...
Most websites have images. There are many different features and functionalities that can be used to work with images via the use of JavaScript. These include preloading, rollovers, and cycling...
Business has been growing at BSN Bicycles, and the store owners have been using their Access database to store information about their customers. Now that the store is a little more established, the...
Janet needs an elevator seat attached to her stairs since she has a medical condition that makes her unable to climb the stairs in her house. The $10,000 spent on the elevator seat does not increase...
Briefly discuss the strengths and limitations associated with this approach and the specific design . Develop a hypothetical research scenario that would necessitate the use of the Action Research...
The following selected transactions were completed during June between Salinas Company and Brokaw Company: June 2. Salinas Company sold merchandise on account to Brokaw Company, $20,000, terms FOB...
At the Natural History Museum, tickets cost $10 for adults and $6 for kids under 12. What would be the total cost for 12 adult tickets and 18 kids tickets? What would be the total cost for a adult...
Toys Dolls Us is a toy manufacturer from Goldtown, Richland, with production facilities in Richland, Newland and Farawayland. Dolls Us produces a wide range of toys but is best known for a doll named...
The following questions are not related. a. Why do you think corporations prefer operating leases over capital leases? How do you think a shareholder would view an operating lease? b. If you were to...
What distinguishes a short-term investment in shares from a long-term investment in shares?
Do an Internet search to find the SOC 3 report for Googles Cloud Platform System for the latest period available. Required: a. Read the report. Identify the accounting firm that performed the SOC 3...
An auditor performs an analytical procedure and calculates an expected interest expense for the client using the average debt outstanding, the weighted average interest rate, and the payment dates....
Analytical procedures: a. are only done during the risk assessment phase of the audit. b. are substantive procedures and cannot be used at any other stage of the audit. c. are used at the risk...
What is the name of the amount of money that can be deducted directly from the computed tax, instead of from the taxable income?
Tracing is: a. not a useful audit procedure. b. tracking source documents back to the underlying accounting records. c. the main audit procedure used to gather evidence on the existence assertion. d....
Substantive procedures: a. are done only if control testing is not done. b. are designed to detect material misstatements at the assertion level. c. eliminate all risk of material misstatement in the...
On January 1, 2021, Jalen Company purchased land costing $800,000. Instead of paying cash at the time of purchase, Jalen plans to make four installment payments of $215,221.64 on June 30 and December...
Multiple Choice Questions: 1. The largest component of aggregate demand is? a. Government purchases. b. Net exports. c. Consumption. d. Investment. 2. A reduction in personal income taxes, other...
How should prior period adjustments be reported in the financial statements? Give an example of a prior period adjustment.
Discuss the appropriate treatment in the financial statements of each of the following. (a) An amount of $113,000 realized in excess of the cash surrender value of an insurance policy on the life of...
Discuss the appropriate treatment in the financial statements of each of the following. (a) An amount of $113,000 realized in excess of the cash surrender value of an insurance policy on the life of...
Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Number of orders Units per order Sales returns: Number of returns Total units...
Starting next year you plan on saving for a trip 10 years from now. You plan to save a $1000 a year from year 1 to year 9 because in year 10 there is no point in putting money away if you are going...
Write a C++ program to implement a stack using linked lists and provide functions for push, pop, and peek operations.

Why are intercompany items eliminated from consolidated financial statements? Name two intercompany items that are eliminated.

Question:

Step by Step Answer:

Eliminating intercompany items from consolidated financial statement...View the full answer

Accounting

Students also viewed these Accounting questions