harleymustangs2051 harleymustangs2051
  • 09-09-2020
  • Business
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Why are intercompany sale of assets eliminated?

Respuesta :

Baraq
Baraq Baraq
  • 09-09-2020

Answer:

To avoid a company's documentation of revenue from sales to itself

Explanation:

Intercompany sale of assets is a financial related term that can only arise as a result of transaction activities occurring between companies in a group.

Since it is believed that, the various companies in a group of companies are together and the same.

Hence, the intercompany sale of assets is eliminated because of the need to avoid company's documentation of revenue from sales to itself

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