Multiple Choice
When a parent and its subsidiary use a periodic inventory system rather than a perpetual system,the income and asset balances reported in the consolidated financial statements are:
I.affected only if there are upstream intercompany sales of inventory.
II.affected only if there are downstream intercompany sales of inventory.
A) I
B) II
C) Both I and II
D) Neither I nor II
Correct Answer:
Verified
Correct Answer:
Verified
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