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Which of the following statements are correct? I. For a group of assets to constitute a business, they must be capable of being conducted and
Which of the following statements are correct?
I. | For a group of assets to constitute a business, they must be capable of being conducted and managed for the purpose of generating income. |
II. | 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. |
III. | 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. |
IV. | The consolidation process involves making adjustments to the individual financial statements and ledger accounts of the entities within the group. |
a.
I. only
b.
I. and II. only
c.
I., II. and III. only
d.
I., II., III. and IV.
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