Where an Investor Sells Inventory to an Associate in a Prior

question 13

Multiple Choice

Where an investor sells inventory to an associate in a prior year and the inventory is sold by the associate during the current year the investment in associate account is:

• A)unaffected;
• B)decreased by the investor's share of the realised profit;
• C)increased by the investor's share of the realised profit;
• D)increased by the full amount of the realised profit.

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Definitions:

Arbitrate

To mediate or resolve disputes between parties by making a decision or judgment that is binding upon those involved.

Managers

individuals responsible for controlling or administering an organization or group of staff.

Persuasive Communication

The act of using arguments, appeals, or messages with the goal of influencing the attitudes, beliefs, or behaviors of others.

Negotiations

The process by which two or more parties discuss and attempt to reach an agreement or resolution on a matter of mutual interest.