Williard Corporation Regularly Sells Inventory Items to Its Subsidiary, Petty

question 3

Multiple Choice

Williard Corporation regularly sells inventory items to its subsidiary, Petty, Inc. If unrealized profits in Petty's 20X1 year-end inventory exceed the unrealized profits in its 20X2 year-end inventory, 20X2 combined

• A)cost of sales will be less than consolidated cost of sales in 20X2.
• B)gross profit will be greater than consolidated gross profit in 20X2.
• C)sales will be less than consolidated sales in 20X2.
• D)cost of sales will be greater than consolidated cost of sales in 20X2.

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Definitions:

U.S. Treasury Bonds

Long-term government debt securities issued by the United States Department of the Treasury with maturities greater than 10 years.

Managed Mutual Fund

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Retirement

The period of one's life after deciding to permanently leave the workforce behind, often associated with reaching a certain age or financial security.

College Graduate

An individual who has successfully completed a course of study at a college or university and has been awarded a diploma or degree.