In the Preparation of Consolidated Financial Statements,which of the Following

question 1

Multiple Choice

In the preparation of consolidated financial statements,which of the following intercompany transactions must be eliminated as part of the preparation of the consolidation working papers?

• A)All revenues,expenses,gains,losses,receivables,and payables
• B)All revenues,expenses,gains,and losses but not receivables and payables
• C)Receivables and payables but not revenues,expenses,gains,and losses
• D)Only sales revenue and cost of goods sold

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Definitions:

Revenue

The income generated from normal business operations, such as the sale of goods or services.

Budget

A detailed plan for the future that is usually expressed in formal quantitative terms.

Activity Measure

An allocation base in an activity-based costing system; ideally, a measure of the amount of activity that drives the costs in an activity cost pool.

Patient-visits

A measure used in healthcare to quantify the number of visits or interactions patients have with healthcare providers.