50.1K
Verified Solution
Link Copied!
What is the basic premise of eliminating intra-entity sales when financial statements are being consolidated?
Select one:
a. Because intra-entity sales will unfairly depress the subsidiary's financial performance
b. Because sales transactions that are between the parent and its subsidiary do not bring in new money from outside customers
c. Because if sales transactions between the parent and its subsidiary are on credit, no cash is received
d. Because the parent is more sophisticated and larger than the subsidiary
Answer & Explanation
Solved by verified expert
