Which Statement Is True Concerning Unrealized Profits in Intra-Entity Inventory

question 90

Multiple Choice

Which statement is true concerning unrealized profits in intra-entity inventory transfers when an investor uses the equity method?

• A) The investee must defer upstream ending inventory profits.
• B) The investee must defer upstream beginning inventory profits.
• C) The investor must defer downstream ending inventory profits.
• D) The investor must defer downstream beginning inventory profits.
• E) The investor must defer upstream beginning inventory profits.

---

Definitions:

Differentiation

The process by which cells become specialized in structure and function.

Mitosis

Mitosis is a type of cell division that results in two daughter cells each having the same number and kind of chromosomes as the parent nucleus, typical of ordinary tissue growth.

Cleavage

A cellular division process in early animal embryo development, where the zygote undergoes multiple cell divisions without growth, leading to a multicellular stage.

Karyotype

The number and appearance of chromosomes in the nucleus of an eukaryotic cell. The term is also used for the complete set of chromosomes in a species or an individual organism.