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When There Are Intercompany Sales of Inventory During the Year

Question 1

Multiple Choice

When there are intercompany sales of inventory during the year and a three-part consolidation worksheet is prepared,elimination 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.


A) I
B) II
C) Both I and II
D) Either I or II

Correct Answer:

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