The Investment in Antipolo Branch in the books of the home office is lower than the Home Office Current in the books of the branch. Which of the following statements would explain the difference?
The Investment in Antipolo Branch in the books of the home office is lower than the Home Office Current in the books of the branch. Which of the following statements would explain the difference?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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17
ABC Company has a branch operation located in Antipolo. The Investment in Antipolo Branch in the books of the home office is lower than the Home Office Current in the books of the branch. Which of the following statements would explain the difference?
Group of answer choices
Inventories may be in transit from the home office to the branch.
Cash may be in transit from the branch to the home office.
The home office may have assigned an expense allocation to the branch.
Cash may have been collected by the home office for the branch but such is not yet reported to the branch.
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