Where an Intragroup Sale of an Asset at a Profit

question 42

True/False

Where an intragroup sale of an asset at a profit has been made and the asset was classified as plant in the selling entity's books,but subsequently classified as inventory in the buying entity's books,a credit adjustment is required against cost of sales in the year of sale.

---

Definitions:

First Continental Congress

The initial meeting of delegates from twelve of the thirteen colonies in 1774, convened to respond to the British Coercive Acts.

Declaration of Rights

A document outlining the fundamental rights and freedoms that are guaranteed to a person or recognized by a legal system, such as the United States Bill of Rights.

British Resistance

The opposition and defiance demonstrated by British forces, government, and civilians during conflicts, most notably during World War II.

Galloway's Plan

A proposal by Joseph Galloway in 1774 aimed at maintaining the American colonies' allegiance to Great Britain by offering them greater autonomy within the empire.