During the Current Period, a Subsidiary Entity Sold Inventories to Its

question 26

Multiple Choice

During the current period, a subsidiary entity sold inventories to its parent entity at a profit of $4 000. The goods had originally cost the subsidiary $10 000. At the end of the year all the inventories were still on hand. The adjustment entry to deal with this transaction on consolidation would include the following line item:

• A) Cr Inventories $4 000.
• B) Cr Inventories $6 000.
• C) Cr Inventories $10 000.
• D) Cr Inventories $14 000.

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Definitions:

Gender Schema Theory

A theory suggesting that individuals learn about what it means to be male or female from the culture in which they live, forming organized sets of beliefs about gender roles and behaviors.

Freudian Psychoanalysis

A therapeutic technique and theory of psychology developed by Sigmund Freud, emphasizing unconscious motivations and conflicts.

Piaget's Theory

A developmental theory by Jean Piaget that describes how children develop logical thinking and cognitive abilities through a series of four stages from infancy to adolescence.

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