Which of the following statements is incorrect?
A) Where consolidated financial statements are prepared over a number of years, consolidation entries need to be made every time a consolidation worksheet is prepared.
B) Consolidation adjusting entries affect the ledger accounts of the parent and subsidiaries.
C) A consolidation worksheet is used to help the process of adding together the financial statements of the parent and its subsidiaries.
D) There are no consolidated ledger accounts.

Question

Quizplus · Accepted Answer

Consolidation adjusting entries are made in the consolidation worksheet to eliminate intercompany transactions and balances, and they do not affect the individual ledger accounts of the parent or subsidiaries directly.

Which of the Following Statements Is Incorrect