Consolidated financial statements:
A)Show the results of operations,cash flows,and the financial position of all entities under a parent's control,including all subsidiaries.
B)Show the results of operations,cash flows,and the financial position of the parent only.
C)Show the results of operations,cash flows,and the financial position of the subsidiary only.
D)Include the investments in the subsidiaries on the balance sheet.
E)Do not include a balance sheet.

Question

Quizplus · Accepted Answer

Consolidated financial statements show the financial position, results of operations, and cash flows of all entities under a parent's control. This includes all subsidiaries. Therefore, choice A is the best option. Choices B, C, and E are incorrect because they do not show the full financial picture of all entities under the parent's control. Choice D is not sufficient because showing only the investments in subsidiaries does not provide a complete picture of the financial position, results of operations, and cash flows of all entities under the parent's control.

Consolidated Financial Statements