IC recap2

Which of the following can be the example of intercompany recharges?

• Management Fees

• IT costs

• Insurance

• All answers are correct

Is seller (AR side) always right?

• Yes

• No

Which of the following should be (usually is) included in Intercompany Policy?

• Deadlines

• Invoice requirements

• Thresholds

• Disputes handling

• All answers are correct

Is it obligatory to have Intercompany Policy?

• Yes

• No

• No, but is recommended

During IC reconciliation in December it was discovered that 1 invoice was not posted on buyer (AP) side. What should be done if AP subledger is already closed?

• No action required

• No action needed in December, invoice to be posted in January

• Accrual should be booked in December, reversed in January and invoice posted in January

Company A and B are in the same group XYZ which has a headquarter in Amsterdam. Company A (US) issued intercompany invoice to company B (Switzerland), amount of the invoice 5000 USD for the goods sold. In which currency invoice should be accounted for by company B?

• in CHF which is a currency of company B

• in USD which is a document currency

• in EUR which is a group currency 

 Group XYZ consist of 5 companies A, B, C, D &E

Company F provides Insurance services and issues invoices to company C.

Is this an intercompany transaction?

• Yes

• No

What are the purposes of Intercompany Reconciliation within the same corporate group?

• Global tax reconciliation

• Preparation of consolidated financial statements

• Defining margin on operational business units

• Elimination of intercompany profits