Which of the following intercompany transactions would not require a worksheet elimination in the consolidation process?
A)The subsidiary's payment of rent to its parent.
B)The sale of merchandise by a parent to its subsidiary.
C)The amount of a loan to the subsidiary made by its parent.
D)None of the above.

Question

Which of the following intercompany transactions would not require a worksheet elimination in the consolidation process?
A)​The subsidiary's payment of rent to its parent.
B)​The sale of merchandise by a parent to its subsidiary.
C)​The amount of a loan to the subsidiary made by its parent.
D)​None of the above.

Quizplus · Accepted Answer

All the transactions listed (A, B, and C) involve intercompany transactions that would typically require elimination entries in the consolidation process to avoid overstating revenues, expenses, assets, or liabilities.

Which of the Following Intercompany Transactions Would Not Require a Worksheet