Why must the gross profit on the sale be deferred

Assignment Help Accounting Basics
Reference no: EM132054713

Question - During 20x1, Easy Co. sold inventory to its parent company, Flower Corp. Flower still owned all of the inventory at the end of 20x1. Why must the gross profit on the sale be deferred when consolidated financial statements are prepared at the end of 20x1?

Reference no: EM132054713

Questions Cloud

Are there examples where this statement could be true : Are there examples where this statement could be true? Why or why not? Do you recognize any circumstances where employees
Differences between operating and financial leases : Discuss the differences between operating and financial leases.
Computers and electronic communication : What are some ethical issues and dilemmas related to computers and electronic communication?
Which tax would be likely to yield more revenues : The state government is facing a budget deficit due to low oil prices. Which tax would be likely to yield more revenues?
Why must the gross profit on the sale be deferred : Why must the gross profit on the sale be deferred when consolidated financial statements are prepared at the end of 20x1
Describe the potential effects your assessment method : Explain what the goal is of your assigned assessment/evaluation method. Analyze the possibility of bias in your assigned assessment/evaluation method.
What is object oriented programming : What is object oriented programming and what benefits does it provide. Define encapsulation, abstraction and polymorphism.
Describe some of the challenges a forensic investigator : Describe some of the challenges a forensic investigator faces with collecting evidence in a cloud environment
Discovered oil field on lands owned by state government : Suppose an oil company is considering whether to develop production facilities for a newly discovered oil field on lands owned by a state government.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Shield security company had the following transactions

What is the total amount posted to the accounts payable control and office supplies accounts from the purchases journal for November?

  Identify the dependent and independent variables

Before the experiment, only 36% of employees wore seat belts. After 1 month of the lottery, the usage rate is up to 57%. a. Identify the dependent and independent variables in this experiment.

  Large minimum investments and are marketed to institutions

Derivative transactions are designed to increase risk and are used almost exclusively by speculators who are looking to capture high returns.

  Presents a legal and ethical issue of a business situation

A description of a business situation that presents a legal and ethical issue. The business situation must be from prior, current, or anticipated future.

  Explain concept of equivalent units versus physical units

In accounting terms, explain to him the concept of equivalent units versus the physical units on the production floor.

  Discuss the organization will be for a non-exempt purpose

What if the bylaws explicitly state that one part of the organization will be for a non-exempt purpose

  What type of fraud is represented in given case

Were the earnings impressive because of the company's productivity and sound business strategy or because LucidCom took advantage of an acquisition and toyed with financial reports?

  Don james purchased a new automobile

Don James purchased a new automobile

  How much was jane''s basis in the s corporation

How much was Jane's basis in the S corporation after the second year

  Prepare journal entries for sales and sales returns

What amount of sales revenue should Paramount recognize for 2013. Prepare journal entries for sales and sales returns of 2013

  What sales revenue would have to be generated

The company desires to earn a profit of $50,000 and has fixed costs of $100,000. What sales revenue would have to be generated in order to earn desired profit

  What was the mean number of us states in which all of the

1. what was the mean number of u.s. states in which all of the beer brands were sold in in 2008?2. what was the mean

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd