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When There Are Intercompany Sales of Inventory During the Year

question 15

Multiple Choice

When there are intercompany sales of inventory during the year and a three-part consolidation workpaper is prepared,elimination entries related to the intercompany sales: I.Always are needed.
II) Are not needed if all the inventory is resold to unrelated parties prior to the end of the year.


Definitions:

Deductible

The amount paid out of pocket by the policyholder before an insurance company will cover the remaining costs attributed to a claim.

Policyholder

An individual or entity that owns an insurance policy, thereby having the insurance cover for specified risks.

Copayment

A fixed amount paid by a patient for healthcare services, with the remaining balance covered by their insurance plan.

Deductible

The amount a person must pay out-of-pocket before an insurance company will cover the remaining costs of a claim.

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