Multiple Choice
Penny Plc sells inventory items to its subsidiary Bolt Plc.If during the financial year 2013,the unrealised profits in ending inventory in Bolt Plc is less than its unrealised profits in beginning inventory,which of the following statements is correct with respect to Penny Plc's consolidated financial statements after considering these transactions only?
A) Consolidated profit will increase.
B) Consolidated deferred tax liability will increase.
C) Consolidated ending inventory will decrease.
D) Consolidated sales will be unaffected.
Correct Answer:
Verified
Correct Answer:
Verified
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