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.

---

Definitions:

Inferring

The process of drawing conclusions from evidence and reasoning rather than from explicit statements.

Modifying

The process of making changes or alterations, typically to improve functionality or performance.

General Principles

Fundamental concepts, rules, or ideas that form the basis of a theory or system.

Scientific Process

A systematic method of investigation, experimentation, and analysis to answer questions and increase knowledge.