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In this session, the focus is on inter-company transactions related to inventory, which often pose challenges for students in advanced accounting courses and CPA exam reviews. The discussion caters primarily to CPA review students, though accounting students interested in in-depth knowledge can consider the advanced accounting course for more extensive learning. The session notes that inventory transactions function similarly to land and fixed asset inter-company transactions. The core concept involves a parent and subsidiary relationship, with transactions being classified as downstream sales whether they occur from the parent to the subsidiary or vice versa.
