A Parent Company Owns 80% of the Issued Capital of Its

question 29

Multiple Choice

A parent company owns 80% of the issued capital of its subsidiary.On consolidation,a sale of inventories between parent and subsidiary will be eliminated as follows:

• A) 20% of sale amount.
• B) 80% of sale amount.
• C) 100% of sale amount.
• D) not eliminated.

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Definitions:

Hemoglobin

A molecule found in red blood cells that is tasked with carrying oxygen from the lungs to various parts of the body.

Anemia

A condition in which there is a deficiency of red cells or of hemoglobin in the blood, resulting in pallor and fatigue.

Blood Cholesterol

A lipid substance present in the blood, essential for building cells and hormones, but high levels can lead to cardiovascular diseases.

Heredity

The passing of genetic traits from parents to offspring, determining various characteristics such as eye color and height.