Unrealised Profits on Intra-Group Sale of Inventories Arise If

question 19

Multiple Choice

Unrealised profits on intra-group sale of inventories arise if:

• A) the sale is an upstream transaction
• B) the sale is a downstream transaction
• C) the inventories are held within the group at date of consolidation
• D) none of the above

---

Definitions:

Sedimentary Rocks

Rocks formed by the accumulation and compression of sediment, which may include minerals, organic matter, and fragments of other rocks.

Exposed Surface

An area where materials such as rock, soil, or sediment are not covered by vegetation or man-made structures and are visible.

Igneous Rocks

Rocks formed by the cooling and solidification of magma or lava, characterized by a crystalline texture.

Sand Dunes

Hills of sand formed by the wind, often found in deserts and along beaches.