Q: 10
What Subsidiary type is used to eliminate revenue and expenses at the consolidated level, removing the effect of transactions between subsidiaries?
Options
Discussion
A Only the elimination subsidiary actually removes intercompany revenue and expenses in NetSuite consolidations.
B
Just to clarify, are they asking specifically about the process of removing intercompany transactions during consolidation? Because if it was just about which entity holds the consolidated results, option B could make more sense. But with "eliminate" in the question, it’s probably A.
Pretty sure it's A. Official training docs and practice tests both call out Elimination Subsidiary for removing intercompany transactions. If I'm off, happy to hear other takes.
Saw a question like this in some exam reports, and it always pointed to A when talking about eliminations at consolidation level.
Practice questions and the NetSuite official guide always list A for elimination of intercompany transactions. A
A that matches how the elimination works in consolidation. The question's wording lines up with NetSuite's elimination subsidiary setup.
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