_____ Which of the following accounts need not be eliminated in consolidation?
A) Intercompany Sales.
B) Intercompany Cost of Sales.
C) Intercompany Interest Expense.
D) Long-term Intercompany Receivables.
E) None of the above.

Question

Quizplus · Accepted Answer

All the listed accounts (Intercompany Sales, Intercompany Cost of Sales, Intercompany Interest Expense, Long-term Intercompany Receivables) need to be eliminated in consolidation to avoid double counting and to present the financial position and results of operations of the consolidated entity as if the separate entities were a single economic entity.

_____ Which of the Following Accounts Need Not Be Eliminated