When a company controls the common shares of another company
A)affiliated financial statements are prepared.
B)consolidated financial statements are prepared.
C)controlling financial statements are prepared.
D)no financial statements are prepared.

Question

Quizplus · Accepted Answer

When a company controls the common shares of another company, consolidated financial statements are prepared to present the financial position and results of operations of the parent company and its subsidiaries as a single economic entity.

When a Company Controls the Common Shares of Another Company