Parent Company has two subsidiaries, Alpha Inc.and Beta Inc.Beta Inc.has approached a bank for a loan.Which of the following would be the most useful to the bank?

Question

Quizplus · Accepted Answer

The bank would be most interested in the financial statements of the specific subsidiary (Beta Inc.) that is applying for the loan, as this would give them the most relevant and accurate information about the company's financial position and ability to repay the loan. The consolidated financial statements of Parent Company or the financial statements of all three companies may provide some additional context, but would not necessarily be as useful or relevant to the bank's decision-making process. The unconsolidated financial statements of Parent Company would not provide any information specific to Beta Inc.

Parent Company Has Two Subsidiaries, Alpha Inc