5. S1: Consolidated statementsworksheet elimination ofintercompany sales of inventorydoes affect consolidated netincome. S2: For consolidationpurposes, profits recorded on anintercompany sale of inventory arerealized in the period ofintercompany sale. *[a] Statement 1 is true.O [b] Statement 2 is true[c] Both statements are true.O [d] Both statements are false.

Consolidated Net Income- Consolidated net income is defined as the total income of the parent entity…

Answered: 5. S1: Consolidated statements…

5. S1: Consolidated statements worksheet elimination of intercompany sales of inventory does affect consolidated net income. S2: For consolidation

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

5. S1: Consolidated statements
worksheet elimination of
intercompany sales of inventory
does affect consolidated net
income. S2: For consolidation
purposes, profits recorded on an
intercompany sale of inventory are
realized in the period of
intercompany sale. *
[a] Statement 1 is true.
O [b] Statement 2 is true
[c] Both statements are true.
O [d] Both statements are false.

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