19

How are intercompany sales eliminated?

Select one: a. Decrease Parents inventory and Subsidiary inventory b. Decrease cost of sales and inventory c. Decrease sales and inventory d. Decrease sales and cost of sales

20

In a consolidated statements workpaper,which items are carried forward from one section to another?

Select one: a. Parents retained earnings,but not Subsidiary b. The eliminations must balance for each section in order to carry them forward. c. The total of the income section to the retained earnings section and then the total of the retained earnings section to the balance sheet section. d. Each section on the workpaper is separate,so no numbers are carried forward