Multiple Choice
Penny Ltd sells inventory items to its subsidiary Bolt Ltd.If during the financial year 2013,the unrealised profits in ending inventory in Bolt Ltd is less than its unrealised profits in beginning inventory,which of the following statements is correct with respect to Penny Ltd'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
Q1: Aladdin Ltd sells inventory for a profit
Q3: Explain,with examples and the assumptions made,why it
Q4: Dividends may be identified as being paid
Q5: The fact that consolidation worksheets start 'afresh'
Q6: Explain why gains recognised on sale of
Q7: Zeus Ltd owns 100% of the
Q8: Stormy Ltd has purchased all the
Q9: French Ltd owns 100% of the
Q10: The term 'cum div' is used when
Q11: Little Company declared a dividend of