Unrealised Profit in the Opening Inventory of a Financial Period

question 6

Multiple Choice

Unrealised profit in the opening inventory of a financial period is adjusted in the consolidation worksheet by a:

• A)debit to retained earnings.
• B)credit to retained earnings.
• C)credit to inventory.
• D)debit to inventory.

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Definitions:

Conversion

The unauthorized act of taking or using someone else's property as one's own, infringing on the rightful owner's rights.

Wrongful Interference

An intentional act of causing a party to fail to fulfill their contractual obligations, resulting in damage or loss.

Appropriation

The unauthorized use of someone's likeness or personal aspects for commercial gain without their express permission.

Standard Of Care

The standard of care refers to the degree of prudence and caution required of an individual who is under a duty of care.