Quiz - Unit 5 - 1. Question: Sales from one subsidiary to...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Question: Sales from one subsidiary to another are called Your Answer: downstream sales. upstream sales. intersubsidiary sales. horizontal sales. CORRECT Points Received: 2 of 2 Comments: 2. Question: Failure to eliminate intercompany sales would result in an overstatement of consolidated Your Answer: Points Received: 0 of 2 Comments: 3. Question: Pratt Company owns 80% of Storey Company's common stock. During 2011, Storey sold $400,000 of merchandise to Pratt. At December 31, 2011, one-fourth of the merchandise remained in Pratt's inventory. In 2011, gross profit percentages were 25% for Pratt and 30% for Storey. The amount of unrealized intercompany profit that should be eliminated in the consolidated statements is
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Your Answer: Points Received: 2 of 2 Comments: 4. Question: The work paper entry in the year of sale to eliminate unrealized intercompany profit in ending inventory includes a Your Answer: Points Received: 2 of 2 Comments: 5.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Quiz - Unit 5 - 1. Question: Sales from one subsidiary to...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online