_____ Which of the following accounts would require reconciliation or adjustment to a reciprocal balance prior to beginning the consolidation process?
A) Intercompany Dividend Income (when the parent uses the cost method).
B) Intercompany Sales.
C) Intercompany Cost of Sales.
D) Long-term Intercompany Payable.
E) None of the above.

Question

Quizplus · Accepted Answer

Long-term Intercompany Payable requires reconciliation or adjustment to a reciprocal balance prior to beginning the consolidation process because it represents a liability for one company and an asset for the other company.

_____ Which of the Following Accounts Would Require Reconciliation or Adjustment