Homer Company Has a Production Schedule of 11,000 Units and a Budgeted

question 125

Multiple Choice

Homer Company has a production schedule of 11,000 units and a budgeted sales volume of 10,000 units for the current year.In addition, 2,000 units are in beginning finished goods inventory._____ units are expected to be in ending finished goods inventory.

• A)13,000
• B)9,000
• C)5,000
• D)3,000

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Definitions:

AASB 10

An Australian Accounting Standards Board standard that sets out the principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.

Consolidated Financial Statements

Financial statements that combine the financial information of a parent company and its subsidiaries into one document.

Non-controlling Interest

A minority ownership in a subsidiary that is not large enough to exert control over the company, reflected within the equity section of the consolidated financial statements.

Consolidated Equity

The total amount of owners' equity represented in a consolidated financial statement, which reflects the combine equity of a parent company and its subsidiaries.