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28 June, 04:23

When a parent and its subsidiary use a periodic inventory system rather than a perpetual system, the income and asset balances reported in the consolidated financial statements are:I. affected only if there are upstream intercompany sales of inventory. II. affected only if there are downstream intercompany sales of inventory.

a. Ib. IIc. Both I and IId. Neither I nor II

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  1. 28 June, 07:47
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    a. I

    Explanation:

    Affected only if there are upstream inter-company sales of inventory. Because when this happens you're gonna have a non-static inventory, it's gonna be changing, your gonna need to apply a perpetual system due to the constant change due to the upstreams sales.
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