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

question 42

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 credit 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:

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, such as coronary artery disease, hypertension, and stroke.

Not Exposed

indicates individuals or populations that have not come into contact with a disease-causing factor or agent.

Construct

An abstract concept or theoretical entity that is used in various fields of study to understand phenomena.

Articulate

The ability to express ideas or thoughts clearly and effectively in spoken or written form.