REFERENCE: Ref.05_04 Walsh Company Sells Inventory to Its Subsidiary,Fisher Company,at a Profit

question 48

Multiple Choice

REFERENCE: Ref.05_04
Walsh Company sells inventory to its subsidiary,Fisher Company,at a profit during 2009.Walsh uses the equity method to account for its investment in Fisher.
-With regard to the intercompany sale,which of the following choices would be a debit entry in the consolidated worksheet for 2009?

• A)Retained earnings.
• B)Cost of goods sold.
• C)Inventory.
• D)Investment Fisher Company.
• E)Additional paid-in capital.

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Definitions:

Business Plan

A detailed document outlining the strategy, objectives, financial projections, and operational guidelines for a new or existing business.

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Estimates of future revenue, expenses, and profitability over a specific period, often used in business planning.

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