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

question 10

Multiple Choice

A subsidiary entity sold inventory to its parent entity at a profit of $4 000.The goods had originally cost the subsidiary $10 000.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 Inventory $4 000
• B)CR Inventory $6 000
• C)CR Inventory $10 000 d,CR Inventory $14 000.

Understand the roles and types of accountants in business.

Understand the roles and responsibilities of managerial accountants.

Identify the authoritative bodies and their roles in the development of accounting principles in the United States.

Comprehend the measurement and cost principles in accounting.

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Definitions:

Falls

Accidental descents to the ground, which can cause injury, especially significant in older adults due to higher vulnerability.

Side Rails Down

The lowering of protective rails on a hospital bed to facilitate patient transfer or make the bed more accessible.

Continuous Seizure Activity

Prolonged seizure episodes without recovery between them, also known as status epilepticus.

Seizure Disorder

A neurological condition characterized by a tendency to have recurrent seizures, which are sudden surges of electrical activity in the brain affecting how a person appears or acts for a short time.