Penny Plc Sells Inventory Items to Its Subsidiary Bolt Plc

question 46

Multiple Choice

Penny Plc sells inventory items to its subsidiary Bolt Plc.If during the financial year 2013,the unrealised profits in ending inventory in Bolt Plc is less than its unrealised profits in beginning inventory,which of the following statements is correct with respect to Penny Plc's consolidated financial statements after considering these transactions only?

• A)Consolidated profit will increase.
• B)Consolidated deferred tax liability will increase.
• C)Consolidated ending inventory will decrease.
• D)Consolidated sales will be unaffected.

---

Definitions:

Technology Advances

Progressive developments and improvements in technology, which enhance efficiency, capabilities, and performance.

Typical Caseload

The average number of cases or matters that a legal professional, such as an attorney or a judge, handles over a certain period, reflecting their workload.

Litigation

The process of working a lawsuit through the court system.

Drafting Documents

The process of creating legal documents requiring specific legal language and adherence to legal protocols.