Senior Closing Entries

Test your Senior-level Closing Entries skills in Core Accounting Processes. This timed assessment evaluates your expertise in Accounting.

Duration: 5 minutes

•40 questions

Time Remaining: 05:00

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Question 1 of 40Assessment

In preparing consolidated financial statements, how are intercompany sales and cost of goods sold treated during the closing/consolidation process?

A. They are closed to a special 'Intercompany Profit' account on the parent's books.

B. They are eliminated via consolidation entries before the consolidated net income is determined.

C. The subsidiary closes its books first, then the parent eliminates the sales.

D. They are netted against each other in the parent's Income Summary account.

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