When Comparing the Difference Between an Upstream and Downstream Transfer

question 104

Multiple Choice

When comparing the difference between an upstream and downstream transfer of inventory, and using the initial value method, which of the following statements is true when there is a non-controlling interest?

• A) Income from subsidiary will be lower by the amount of the ending inventory profit multiplied by the non-controlling interest percentage for downstream transfers.
• B) Income from subsidiary will be higher by the amount of the ending inventory profit multiplied by the non-controlling interest percentage for downstream transfers.
• C) Income from subsidiary will be reduced for downstream ending inventory profit but not for upstream profit, before the effect of the non-controlling interest.
• D) Income from subsidiary will be reduced for upstream ending inventory profit but not for downstream profit, before the effect of the non-controlling interest.
• E) Income from subsidiary will be the same for upstream and downstream profit.

---

Definitions:

PowerPoint Slides

Individual pages in a PowerPoint presentation, each of which can contain text, images, videos, and other data.

Font Styles

Variations in the appearance of printed text, including factors such as typeface, size, and weight.

Colors per Slide

An aspect of presentation design referring to the number and type of colors used on a single slide to enhance visual appeal.

Statistics

The science of collecting, analyzing, interpreting, and presenting data.