When There Are Intercompany Sales of Inventory During the Year

question 51

Multiple Choice

When there are intercompany sales of inventory during the year and a three-part consolidation worksheet is prepared,consolidation entries related to the intercompany sales:
I.Always are needed.
II.Are not needed if the entire inventory is resold to unrelated parties prior to the end of the year.

• A)I
• B)II
• C)Both I and II
• D)Either I or II

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Definitions:

Quantity Demanded

The total amount of a good or service consumers are willing and able to purchase at a given price in a specified period.

Demand Curve

Is a graphical representation showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Demand Curves

Graphical representations of the relationship between the price of a good or service and the quantity demanded by consumers at those prices.