Only Sales to Outsiders and Purchases from Outsiders Are Reflected

question 143

True/False

Only sales to outsiders and purchases from outsiders are reflected in a consolidated income statement because all intercompany transactions are eliminated in preparing the consolidated statement.

---

Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Attitude

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor, which influences individuals' behavior and perceptions.

Cognition

The mental processes that are involved in acquiring, storing, retrieving, and using information and that include sensation, perception, imagery, concept formation, reasoning, decision making, problem solving, and language.

Foot-In-The-Door Technique

A persuasive strategy where a smaller request is made first to increase the likelihood of agreement to a larger request later.