In the Consolidation Worksheet for 2017, Which of the Following

question 92

Multiple Choice

In the consolidation worksheet for 2017, which of the following accounts would be credited to eliminate the intra-entity transfer of inventory?

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

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Definitions:

Stock Dividend

A form of dividend payment made by a company to its shareholders in the form of additional shares rather than cash.

Market Price

The current market value at which a service or good can be traded.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on a part of the company's profits or losses.

Par Common Stock

The face or nominal value attributed to a common stock share as specified in the company's charter.