Which of the following statements are correct?

A. For a group of assets to constitute a business, they must be capable of being conducted and managed for the purpose of generating income.

B. The effect of an intragroup sale of inventories at a profit where the inventories are still on hand at the end of the reporting period is that both profit and the inventory asset are overstated.

C. An entity can control another entity with an ownership interest of less than 50%, but only if there is a legally binding contract in place between all investors that passes control to the entity.

D. The consolidation process involves making the adjustment to the individual financial statements and ledger accounts of the entities within the group.

Choices:

1. A only

2. A and B only

3. A, B and C only

4. A, B, C and D only.

The consolidation process involves making adjustments to the individual financial statements and ledger accounts of the entities within the group