When Comparing the Difference Between an Upstream and Downstream Transfer

question 29

Multiple Choice

When comparing the difference between an upstream and downstream transfer of inventory,and using the initial value method,which of the following statements is true?

• A)Income from subsidiary will be lower by the amount of the beginning inventory profits multiplied by the noncontrolling interest percentage for upstream transfers.
• B)Income from subsidiary will be higher by the amount of the beginning inventory profits multiplied by the noncontrolling interest percentage for upstream transfers.
• C)Income from subsidiary will be reduced for downstream ending inventory profits but not for upstream profits,before the noncontrolling interest.
• D)Income from subsidiary will be reduced for upstream ending inventory profits but not for downstream profits,before the noncontrolling interest.
• E)Income from subsidiary will be the same for upstream and downstream profits.

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Definitions:

Functional Magnetic

Likely refers to functional magnetic resonance imaging (fMRI), a neuroimaging procedure that measures brain activity by detecting changes associated with blood flow.

Blood Flow

The continuous circulation of blood in the cardiovascular system, driven by the heart, delivering nutrients and oxygen to cells and removing waste products.

Brain Function

The activities associated with the brain, including cognition, emotion, memory, and motor skills, essential for survival and daily living.

Interneuron

A nerve cell that carries impulses from one nerve cell to another and is not directly associated with either an effector or a sensory receptor. Most interneurons are association neurons.