Where an Investor Sells Inventories to an Associate and the Inventories

question 22

Multiple Choice

Where an investor sells inventories to an associate and the inventories are still on hand at the end of the year the investor's share of the associate's profits is:

• A) not affected as unrealised profits are only considered to arise in a parent-subsidiary relationship.
• B) not affected as the unrealised profit is in the books of the investor, not the associate.
• C) increased by the investor's share of the unrealised profit.
• D) decreased by the investor's share of the unrealised profit.

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Definitions:

XY

A 23rd chromosome pair that consists of an X-shaped chromosome from the mother and a Y-shaped chromosome from the father. XY zygotes become males.

Chromosomes

Threadlike structures made of DNA molecules that contain the genes and are located in the nucleus of cells.

X Chromosomes

One of the two types of sex chromosomes, where two X chromosomes typically characterize females and one X and one Y chromosome characterize males.

Monozygotic Twins

Twins that result from one fertilized egg splitting and developing into two embryos, sharing identical genetics.