For Consolidation Purposes, What Amount Would Be Debited to Cost

question 58

Multiple Choice

For consolidation purposes, what amount would be debited to cost of goods sold for the 2017 consolidation worksheet with regard to unrecognized intra-entity gross profit remaining in ending inventory with respect to the transfer of merchandise?

• A) $ 300.
• B) $ 240.
• C) $2,000.
• D) $1,600.
• E) $ 270.

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Definitions:

Finance Perspective

An approach or viewpoint emphasizing financial metrics and outcomes in decision-making processes or analysis.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and earnings without needing to increase financial leverage.

Assumptions

Premises or conditions accepted as true or certain without proof for the purpose of further analysis or argument.

Basic Assumptions

Fundamental beliefs or principles that underlie the financial accounting system, including economic entity, monetary unit, time period, and going concern.