Where an Investor Sells Inventories to an Associate in a Prior

question 8

Multiple Choice

Where an investor sells inventories to an associate in a prior year and the inventories are sold by the associate during the current year, the investment in associate account is:

• A) not adjusted as the profit has been realised.
• B) decreased by the investor's share of the realised profit.
• C) increased by the investor's share of the realised profit.
• D) increased by the full amount of the realised profit.

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Definitions:

Paying

The act of giving money in exchange for goods, services, or to settle debts.

Green Product

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Being environmentally friendly involves practices and products that cause minimal harm to the environment, aiming to reduce pollution and conserve resources.

Federal Trade Commission

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