Dave Company sold inventory to Raine Company, its 90%-owned subsidiary. The sale is on account and remain outstanding as of the reporting period. How should the intercompany receivable and payable be presented in the consolidated statements? a. Dave Company should present only 90% of the receivable in the consolidated statement of financial position. b. The receivable in the book of Dave and payable in the book of Raine will be forwarded in full in the consolidated statement of financial position. c. The receivable in the book of Dave will be forwarded in full and payable in the book of Raine will be prorated only to 90% in the consolidated statement of financial position. d. Both receivable and payable will be eliminated in full.
Dave Company sold inventory to Raine Company, its 90%-owned subsidiary. The sale is on account and remain outstanding as of the reporting period. How should the intercompany receivable and payable be presented in the consolidated statements? a. Dave Company should present only 90% of the receivable in the consolidated statement of financial position. b. The receivable in the book of Dave and payable in the book of Raine will be forwarded in full in the consolidated statement of financial position. c. The receivable in the book of Dave will be forwarded in full and payable in the book of Raine will be prorated only to 90% in the consolidated statement of financial position. d. Both receivable and payable will be eliminated in full.
Dave Company sold inventory to Raine Company, its 90%-owned subsidiary. The sale is on account and remain outstanding as of the reporting period. How should the intercompany receivable and payable be presented in the consolidated statements? a. Dave Company should present only 90% of the receivable in the consolidated statement of financial position. b. The receivable in the book of Dave and payable in the book of Raine will be forwarded in full in the consolidated statement of financial position. c. The receivable in the book of Dave will be forwarded in full and payable in the book of Raine will be prorated only to 90% in the consolidated statement of financial position. d. Both receivable and payable will be eliminated in full.
Dave Company sold inventory to Raine Company, its 90%-owned subsidiary. The sale is on account and remain outstanding as of the reporting period. How should the intercompany receivable and payable be presented in the consolidated statements?
a. Dave Company should present only 90% of the receivable in the consolidated statement of financial position.
b. The receivable in the book of Dave and payable in the book of Raine will be forwarded in full in the consolidated statement of financial position.
c. The receivable in the book of Dave will be forwarded in full and payable in the book of Raine will be prorated only to 90% in the consolidated statement of financial position.
d. Both receivable and payable will be eliminated in full.
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
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