When preparing a Consolidated Statement of income, inter-company transactions are cancelled. Which one or more of the following would you say is the reason for this step?

(a) That is how it is expected to be done

(b) Otherwise group earnings can be inflated by one within the group earning from another

(c) Otherwise the same amount is double-counted both as an income and expense

(d) Failure to do so would be bad for the group image

Transcribed Image Text:

wb & d x b & c ya & c Zc & d C N