FAR 4.6 - Intercompany Transactions

Question 1

100 percent of intercompany transactions must be eliminated even when:

Answer 1

The parent owns less than 100% of the sub

Question 2

In eliminating intercompaany transactions, inventory sold to outsiders would be reflected by making an adjustment to

Answer 2

Cost of goods sold

Question 3

In eliminating intercompaany transactions, inventory inventory still on hand would be reflected by making an adjustment to

Answer 3

Correct ending inventory