_____ An intercompany inventory transfer above cost occurred in 2005. At 12/31/05, a portion of the transferred inventory remained unsold. Which of the following accounts would not require adjustment or elimination in consolidation at the end of 2005?

Question

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Sales would not require adjustment or elimination in consolidation for the intercompany inventory transfer above cost. The adjustments or eliminations in a consolidation process primarily target eliminating the effects of intercompany transactions to present the financial position and results of operations as if the group of companies were a single entity. Adjustments are typically made to intercompany sales, cost of sales, and inventory to eliminate profits arising from intercompany transactions that are not yet realized from an external party's perspective. Sales to external parties are not affected by intercompany transactions and therefore do not require adjustment.

_____ an Intercompany Inventory Transfer Above Cost Occurred in 2005