Which of the Following Events Is an Intercompany Transaction That

question 47

Multiple Choice

Which of the following events is an intercompany transaction that requires the deferral and later recognition of income?

• A)accrual of rentals on a lease of real property owned by one group member that is used by another group member; both group members use the accrual method of accounting
• B)cash dividend payment from a subsidiary corporation to its parent corporation
• C)sale of inventory from a subsidiary corporation to its parent corporation
• D)None of the above transactions require the deferral and later recognition of income.

---

Definitions:

Short-Term Attraction

Relates to the initial phase of feeling drawn towards someone, which is often fleeting and based on superficial attributes.

Conflict Dissonance

The psychological tension or discomfort arising from inconsistencies within one's beliefs, attitudes, or behaviors during a conflict.

Conflict Trigger

A common perceived cause of interpersonal conflict.