A Subsidiary Entity Sold Inventory to Its Parent Entity at a Profit

question 25

Multiple Choice

A subsidiary entity sold inventory to its parent entity at a profit of $8 000.The goods had originally cost the subsidiary $20 000.At the end of the year all the inventory was still on hand.The adjustment entry to deal with this transaction on consolidation would include the following line item:

• A)CR Cost of sales $28 000
• B)CR Cost of sales $20 000
• C)CR Cost of sales $12 000
• D)CR Cost of sales $8 000.

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Definitions:

Population Health

The study and improvement of the health outcomes of a group of individuals, focusing on the distribution of those outcomes within the population.

Ottawa Charter

A 1986 document that provides a framework for health promotion globally, emphasizing the need for public policy, supportive environments, community action, personal skills, and reorienting health services.

Prerequisite

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Physical Environment

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