During the Current Period, a Subsidiary Entity Sold Inventories to Its

question 9

Multiple Choice

During the current period, a subsidiary entity sold inventories to its parent entity at a profit of $6 000. The goods had originally cost the subsidiary $30 000. All the inventories were still on hand at the end of the year. The consolidation adjustment entry would include the following line item:

• A) CR Inventories $30 000.
• B) CR Inventories $24 000.
• C) CR Inventories $18 000.
• D) CR Inventories $6 000.

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Definitions:

Theory Y

A management concept that assumes employees are inherently motivated and can exercise self-control and self-direction in achieving objectives.

Subsystems

Subsystems are smaller components of a larger system.

Operations and Service Management

The administration of business practices aimed at ensuring maximum efficiency within a company, specifically in the production of goods and services.

Trade Associations

Organizations founded and funded by businesses operating in a specific industry, aimed at promoting common interests, sharing information, and often influencing public policy.