Companies in an economic entity may increase the level of consolidated sales reported by selling inventory between themselves.

Name: Companies in an economic entity may increase the level of consolidated sales reported by selling inventory between themselves.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Selling inventory between companies within the same economic entity does not increase consolidated sales because these transactions are eliminated in consolidation to avoid double counting of revenue.

Companies in an Economic Entity May Increase the Level of Consolidated