The Effect of an Intragroup Sale of Inventories at a Profit

question 39

True/False

The effect of an intragroup sale of inventories at a profit, where the inventories have been sold to external parties prior to the end of the reporting period, is that both profit and the inventories asset are overstated.

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Definitions:

Excitatory

Pertains to stimuli or substances that increase neuronal activity or facilitate the firing of neurons.

Inhibitory

Pertains to any process or substance that slows down or stops a particular reaction or activity.

Basic Drives

Fundamental biological impulses that drive behavior, such as hunger, thirst, sleep, and reproduction.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems, and involved in sleep and emotional activity.