18.1 A branch is a subset of a larger company that may operate from the same country where the …….. operates.
18.2 A branch is an extension of the …… company.
18.3 State the accounts prepared and kept by the head office on behalf of the branch.
18.4 The ……. of each branch should be regularly monitored to ensure that there is no loss, theft, or obsolete items.
18.5 State the methods of accounting for inventory sent to a branch by the head office.
18.6 When the head office transfers inventory at selling price to the branch, using the memorandum column method, a branch inventory account shows the transfer to branch profit or loss. Do you agree or disagree?
18.7 When the head office transfers inventory at selling price to the branch, the selling price comprises the cost price plus …..
18.8 When inventory is transferred to the branch from head office at cost plus a predetermined percentage, the head office will prepare and keep the ………. and ……….
18.9 When the head office transfers inventory at cost plus a percentage to the branch, the transfer price comprises the ….. plus a predetermined percentage.
18.10 When a reporting entity (the head office) is preparing the separate and combined financial statements of the head office and branch, what is the purpose of inventory adjustments?
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