Which of the Following Events Is an Intercompany Transaction That

question 47

Multiple Choice

Which of the following events is an intercompany transaction that requires the deferral and later recognition of income?

• A)accrual of rentals on a lease of real property owned by one group member that is used by another group member; both group members use the accrual method of accounting
• B)cash dividend payment from a subsidiary corporation to its parent corporation
• C)sale of inventory from a subsidiary corporation to its parent corporation
• D)None of the above transactions require the deferral and later recognition of income.

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Definitions:

Personality Types

A method for categorizing individuals into specific groups based on their patterns of behavior, thoughts, and feelings.

Under Pressure

Experiencing stress or tension as a result of challenging circumstances or high demands.

Dimension of Personality

Fundamental traits or characteristics that make up an individual's personality, often used in psychology to analyze and understand human behavior.

Core Self-evaluation

A broad personality concept that reflects individuals' fundamental assessments of themselves, their abilities, and their control over their environment.