Intercompany Debt That Must Be Eliminated from Consolidated Financial Statements

question 3

Multiple Choice

Intercompany debt that must be eliminated from consolidated financial statements may result from:

• A)​one member of a consolidated group selling its bonds directly to another member of the group.
• B)​one member of a consolidated group advancing funds to another member of the group so that the member may retire bonds it had issued to outside parties.
• C)​one member of a consolidated group purchasing bonds from outside parties as an investment that had been issued to outside parities by another member of the group.
• D)​all of the above.