Assume There Are Routine Inventory Sales Between Parent Companies and Subsidiaries.When

question 25

Multiple Choice

Assume there are routine inventory sales between parent companies and subsidiaries.When preparing the consolidated financial statements,which of the following line items is indifferent to the sales being either upstream or downstream?

• A)Consolidated retained earnings
• B)Consolidated gross profit
• C)Noncontrolling interest share
• D)Controlling interest share of consolidated net income

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Definitions:

Bid Price

The bid price is the highest price a buyer is willing to pay for a security or asset at a given time, crucial in the trading of stocks, bonds, and commodities.

Quoted Bid

The highest price a buyer is willing to pay for a security or commodity in the financial markets.

Treasury Note

A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years.

Dow Jones

A reference to either the Dow Jones Industrial Average (DJIA), a stock market index of 30 prominent companies in the U.S., or the company Dow Jones & Company, known for its financial market indices and news.