Which of the Following Events Is an Intercompany Transaction

question 29

Multiple Choice

Which of the following events is an intercompany transaction?

• A)a capital contribution
• B)accrual of interest on a loan made by one group member to another group member; both group members use the accrual method of accounting
• C)dividend payment received from a subsidiary corporation to its parent corporation; the subsidiary corporation is not an includible corporation
• D)a parent corporation's sale of stock of a subsidiary corporation to a nonmember of the group

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Definitions:

Demographics

Statistical data relating to the population and particular groups within it, often used for identifying marketing targets.

Direct Order

A method of purchasing where buyers directly contact the suppliers to place an order, eliminating intermediaries.

Prospective Buyer

An individual or business showing interest in purchasing a product or service but has yet to make a transaction.

Transaction

An exchange or transfer of goods, services, or funds between two or more parties, typically involving a payment from the buyer to the seller.