When Eliminating an Intragroup Service Which of the Followings Would

question 24

Multiple Choice

When eliminating an intragroup service which of the followings would appear in the consolidation worksheet entry?

• A) Dr Services expense
• B) Dr Services revenue
• C) Cr Income tax expense
• D) Cr Deferred tax liability

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Definitions:

Marginal Revenue

The increase in revenue that results from the sale of an additional unit of output.

Total Revenue

The total income received by a firm from the sale of its goods or services, calculated as the unit price multiplied by the quantity sold.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at different prices during a specified time period.

Positive Profits

Earnings that exceed the total costs, indicating a financially beneficial outcome.