Which of the following is NOT omitted from the consolidated accounts?
A) Debt owing to parent company by subsidiary company
B) Intercompany sales
C) Management fees charged to the subsidiary by the parent company
D) Credit sales of the subsidiary

Question

Quizplus · Accepted Answer

Intercompany sales, management fees and debt owing to parent company are all eliminated in consolidation to avoid double counting. However, credit sales of the subsidiary are not eliminated as they represent external transactions with customers.

Which of the Following Is NOT Omitted from the Consolidated