When a Parent and Its Subsidiary Use a Periodic Inventory

question 40

Multiple Choice

When a parent and its subsidiary use a periodic inventory system rather than a perpetual system,the income and asset balances reported in the consolidated financial statements are:
I.affected only if there are upstream intercompany sales of inventory.
II.affected only if there are downstream intercompany sales of inventory.

• A)I
• B)II
• C)Both I and II
• D)Neither I nor II

Comprehend the concept of monetary neutrality and its relevance to economic theory and policy.

Apply the quantity theory of money to predict changes in nominal and real GDP affected by variations in money supply.

Understand the concepts and types of conflicts and their relative stress levels.

Gain knowledge about the Social Readjustment Rating Scale and its relationship to stress and health outcomes.

---

Definitions:

Sample Proportion

The quotient of the number of times an event occurs in a sample to the total number of observations in the sample.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter with a specified degree of confidence.

Population Proportion

A measure that describes the fraction of individuals in a population having a particular trait or attribute.

Random Sample

A sample drawn from a population in such a way that every individual has an equal chance of being selected.