Strickland Company Sells Inventory to Its Parent, Carter Company, at a Profit

question 82

Multiple Choice

Strickland Company sells inventory to its parent, Carter Company, at a profit during 2010. One-third of the inventory is sold by Carter in 2010. In the consolidation worksheet for 2010, which of the following choices would be a debit entry to eliminate unrealized intra-entity gross profit with regard to the 2010 intra-entity sales?

• A) Retained earnings.
• B) Cost of goods sold.
• C) Inventory.
• D) Investment in Strickland Company.
• E) Sales.

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Definitions:

Permissiveness

An attitude or policy of allowing or tolerating behavior that might be considered morally, socially, or legally questionable.

George Gallup

An American pioneer in survey sampling techniques and inventor of the Gallup poll, a method of public opinion polling that became widely influential in society and politics.

Deliberative Poll

A method of polling that involves gathering a representative group of citizens, providing them with information on a specific issue, and allowing them to discuss it before expressing their opinion in a poll.

Deliberative Poll

is a method used to gauge public opinion where participants are given detailed information about a topic and engage in discussion before voting, aiming for a more informed decision-making process.