In determining controlling interest in consolidated income in the consolidated financial statements, unrealized intercompany profit on inventory acquired by a parent from its subsidiary should: a. Not be eliminated b. Be eliminated to the extent of the non-controlling interest in the subsidiary. c. Be eliminated to the extent of the parent company’s controlling interest in the subsidiary d. Be eliminated in full

Q: Starting from the separate cost of goods sold of the affiliates, the consolidated cost of goods sold…

A: Consolidation refers to the process under which two or more companies combine their assets,…

Q: Statement 1: An intercompany sale will affect the consolidated net income the same way regardless if…

A: A sale transaction between two businesses which are members of the same consolidated group is known…

Q: Choose the letter of the item NOT belonging or related to the group in computing for Non-Controlling…

A: Firstly let us understand consolidated statements. Consolidated financial statements are prepared…

Q: The acquisition-related costs in a business combination to be expensed immediately include cost of…

A: The cost of issuing debt securities is the acquisition-related cost which is expenses in the…

Q: What percentage of the intercompany loss on plant asset sale should be used to adjust consolidated…

A: Introduction: To present the Consolidated financial statement, the effect of transactions between…

Q: The adjusting entries for unrealised profit arisen from trading of goods between parent and wholly…

A: When parent and subsidiary companies exchange goods and services an adjusting entry is made for…

Q: When the price paid to acquire another firm is lower than the fair value of its identifiable net…

A: When the price paid to acquire a business is lower than the fair value of its identifiable net…

Q: Please answer the following questions relating to unrealized profit in a business combination. 1)…

A: Unrealized gains are prospective profits that exist on paper as a consequence of an investment. This…

Q: On the consolidated balance sheet, consolidated retained earnings at the end of the year is: A.…

A: Retained earnings balances fluctuate over time based on how well a business does financially and how…

Q: include non-controlling interest. 2. The investment in subsidiary account is recorded in the…

A: A company that controls another company, or in other words has a hold over another company, is a…

Q: Non-controlling interest in consolidated income is never affected by: a. Sale of Parent to…

A: Upstream sales are sales from subsidiary to the parent entity and downstream sales is from the…

Q: Starting from the separate inventory balances of the affiliates, the consolidated inventory balance…

A: At the time of consolidation, inventory is recorded at the fair value so any difference in the fair…

Q: What percentage of the intercompany loss on plant asset sale should be used to adjust consolidated…

A: In accounting, consolidation means the combination of assets, liabilities, and all the other…

Q: Under the equity method of accounting for the operating results of a subsidiary, the dividends…

A:

Q: Which of the following is true regarding consolidation of net income? A. Parent net income is…

A: Consolidated net income: It is the net income of the parent company plus the net income of the…

Q: Consolidated inventory balance is composed of the book values of the parent’s and the subsidiary’s…

A: The consolidated financial states are those financial states that represent the number of…

Q: A) When preparing consolidated financial statement workpapers, unrealized intercompany gains, as a…

A: The accounting of the inter-company is the one which includes the transactions of the company and…

Q: List the types of intercompany revenue and expenses that are eliminated in the preparation of a…

A: Intercompany eliminations display monetary consequences without transactions among subsidiaries.…

Q: Starting from the separate inventory balances of the affiliates, the consolidated inventory balance…

A: Starting from the separate inventory balances of the affiliates, the consolidated inventory balance…

Q: The non-controlling interest in net assets of a partially owned subsidiary is: O Decreased by…

A: Non controlling interest refers to the shareholders having control in minority i.e the shareholders…

Q: Which statement is true in relation to business combination achieved in stages? a. The pre-existing…

A: A business combination achieved in stages is called as a step acquisition

Q: How is non-controlling interest in the subsidiary’s net assets presented in the consolidated…

A: Non-Controlling Interest:- It is also known as "minority interest", these are the owner of less than…

Q: In the equity method of acquisition income is recognized only when the subsidiary declares dividends…

A: In the equity method of acquisition, income is recognized when the subsidiary company earns net…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.