Ask Question
18 June, 14:18

When there are intercompany sales of inventory during the year and a three-part consolidation worksheet is prepared, consolidation entries related to the intercompany sales:I. Always are needed. II. Are not needed if the entire inventory is resold to unrelated parties prior to the end of the year.

+1
Answers (1)
  1. 18 June, 16:07
    0
    Answer: When there are intercompany sales of inventory during the year and a three-part consolidation worksheet is prepared, consolidation entries related to the intercompany sales "I. Always are needed."

    To correctly reflect the economic reality of the economic group under consideration.
Know the Answer?