Which of the following is not an effect of a working paper elimination for intercompany sales of merchandise by a parent company to a subsidiary?
A) It eliminates the overstatement of the subsidiary's Sales ledger account balance.
B) It removes the intercompany profit portion of the subsidiary's Cost of Goods Sold ledger account balance.
C) It reduces consolidated inventories to the cost incurred by the consolidated entity.
D) It eliminates the parent's Intercompany Sales and Intercompany Cost of Goods Sold ledger accounts balances.
E) None of the foregoing
Correct Answer:
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