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MC Question 10
A parent company sells goods to its 80% owned subsidiary during the financial year, some of which remains in inventory at the year end.
What is the adjustment required in the consolidated statement of financial position to eliminate any unrealised profit in inventory?
A | DEBIT | Group retained earnings |
---|---|---|
CREDIT | Inventory | |
B | DEBIT | Group retained earnings |
DEBIT | Non-controlling interest | |
CREDIT | Inventory | |
C | DEBIT | Group Inventory |
CREDIT | Group retained earnings | |
D | DEBIT | Inventory |
CREDIT | Group retained earnings | |
CREDIT | Non-controlling interest |