In May 2014,a Parent Sold Inventory to a Subsidiary Entity

question 36

Multiple Choice

In May 2014,a parent sold inventory to a subsidiary entity for $60 000.The inventory had previously cost the parent entity $48 000.The entire inventory is still held by the subsidiary at reporting date,30 June 2014.Ignoring tax effects,which of the following is the adjustment entry in the consolidation worksheet at reporting date?

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Definitions:

Generalizability

The extent to which research findings and conclusions can be applied to larger populations or different contexts beyond the original study.

Inferences

Conclusions or deductions made based on evidence and reasoning, rather than direct observations, often used in research to derive findings from data.

Experimental Expectations

Anticipated results or outcomes of a scientific experiment based on hypotheses and prior knowledge.

Construct Validity

The degree to which a test measures what it claims to be measuring, reflecting the accuracy of an operationalization of a theoretical construct.