Which of the following statements is correct?
A) Total elimination is consistent with the parent company concept.
B) Partial elimination is consistent with the economic unit concept.
C) Past accounting standards required the total elimination of unrealized intercompany profit in assets acquired from affiliated companies.
D) none of these.

Question

Quizplus · Accepted Answer

Past accounting standards required the total elimination of unrealized intercompany profit in assets acquired from affiliated companies to ensure that financial statements reflect only realized profits.

Which of the Following Statements Is Correct