In the Consolidation Worksheet for 2017, Which of the Following

question 52

Multiple Choice

In the consolidation worksheet for 2017, which of the following accounts would be credited to eliminate unrecognized intra-entity gross profit with regard to the 2017 intra-entity transfers?

• A) Retained earnings.
• B) Cost of goods sold.
• C) Inventory.
• D) Investment in Fisher Company.
• E) Sales.

---

Definitions:

Net Income

Refers to the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Owner, Capital

An account on a company's balance sheet representing the owner's invested equity or interest in the business.

Liability Insurance Policy

Insurance coverage that protects against claims arising from injuries or damages to other people or property for which the insured is liable.

Prepaid Expense

Expenses paid in advance for goods or services to be received in the future, which are recorded as assets until they are actually used.