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:

Interpersonal Relationship

Perception shared by two people of an ongoing interdependent connection that results in the development of relational expectations and varies in interpersonal intimacy.

Submissive Symmetrical

A type of interaction pattern where both parties adopt a less assertive or compliant stance, mirroring each other's submissive behavior.

Power Dynamics

The ways in which power is distributed and exercised within relationships, organizations, or societies, affecting interactions and outcomes.

Source Of Attraction

Factors or qualities in an individual or entity that draw interest, attention, or desire from others.