The view that consolidated financial statements represent those of a single economic entity with several classes of stockholder interest is consistent with the:
A) parent company concept.
B) current practice concept.
C) historical cost company concept.
D) economic unit concept.

Question

Quizplus · Accepted Answer

The economic unit concept views a group of companies consolidated for financial reporting purposes as a single economic entity, despite having multiple classes of stockholder interest. This contrasts with the parent company concept, which focuses on the perspective of the parent company's shareholders.

The View That Consolidated Financial Statements Represent Those of a Single