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.

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Definitions:

Aversive Conditioning

A behavioral training technique where an undesirable behavior is paired with an unpleasant stimulus to reduce the behavior.

Unpleasant Event

An undesirable or negative occurrence that often leads to emotional discomfort or distress.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses or anxiety by gradual exposure to the feared object or situation in conjunction with relaxation exercises.

Phobias

Intense, irrational fears of specific objects or situations that significantly affect a person's life.