In Preparing Consolidated Financial Statements,intercompany Receivables and Payables Must Be

question 129

True/False

In preparing consolidated financial statements,intercompany receivables and payables must be eliminated because they do not represent amounts due to or receivable from parties outside the consolidated entity.

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Definitions:

Parol Evidence

Where a written contract exists, evidence about promises or statements made prior to or during the execution of the writing that are not contained in the written contract.

Partially Integrated

Refers to a written contract that represents a final agreement on some, but not all, terms between parties.

Handwritten Provisions

Clauses or terms specifically written by hand in a legal document that can modify or add to the standard terms of a contract.

Printed Provisions

Standard terms and conditions that are preprinted on contracts or legal documents.