When preparing consolidated financial statements, what is the main reason we eliminate all intercompany transactions between and among a parent company and its subsidiaries?
a. intercompany transactions almost always result in gains, and the conservatism principle says that gains should be deferred, while losses should be recognized immediately.
b. commonly controlled affiliates represent a single economic entity, and an entity cannot engage economically in transactions with itself.
c. the sarbanes-oxley act of 2002 states that affiliated companies should not engage in transactions with each other.
d. management theory suggests that it eliminate problems with self selection.

As related to a company completing the purchase to pay process, is there an accounting journal entry "behind the scenes" when xyz company pays for the goods within 10 days of the invoice (gross method is used for discounts and terms are 2/10 net 30) that updates the general ledger?

You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400

Adecision is made at the margin when each alternative considers