Which of the Following Would Not Be an Elimination on a Work

question 122

Multiple Choice

Which of the following would not be an elimination on a work sheet for a consolidated income statement?

• A) Debit Cost of Goods Sold and credit Sales.
• B) Debit Interest Income and credit Interest Expense.
• C) Debit Common Stock and Retained Earnings and credit Investment in Subsidiary.
• D) Debit Sales and credit Cost of Goods Sold.

---

Definitions:

Model Business Corporation Act

A set of model laws designed to standardize and simplify the legal structure of corporations across the United States.

Ratifies

The act of officially confirming or endorsing a decision, making it formally valid.

Adoption

In corporation law, a corporation’s acceptance of a preincorporation contract by action of its board of directors, by which the corporation becomes liable on the contract.

Novation

The act of replacing one obligation with a new one, extinguishing the original obligation.