Which of the Following Statements Is Correct

question 3

Multiple Choice

Which of the following statements is correct?

• A) All intragroup transactions have an impact on the NCI share of equity.
• B) Transactions that do not affect profit will not give rise to an adjustment to the NCI.
• C) When the parent entity sells inventories to its subsidiary, a consolidation adjustment needs to be recorded to reduce the NCI.
• D) The NCI is not entitled to share the group's profit.

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Definitions:

Cost Data

Information related to the financial expenditures required to produce goods or services.

Purely Competitive Market

An ideal market scenario where many sellers offer identical products, ensuring no single entity can significantly impact market prices or conditions, effectively echoing the principles of pure competition.

Cost Data

Information related to the expenses incurred in producing a product or providing a service, including materials, labor, and overhead.

Output Level

The quantity of goods or services produced by a business or economy within a certain period.