Answer:
The correct answer is b. their transactions with the cooperative.
Explanation:
A general cooperative society is the one that controls or acts as the "parent" of the other incorporated cooperatives, therefore the accounting management of all of them as a whole will be considered in a consolidated statement of their operations. As there are mutual operations between the incorporated and the parent, it is expected that all obligations, rights or duties will be transferred to a principal in order to recognize the accounting reality of the management of a parent company over others of lower rank considered subordinate.
