Which one of the following accounts would not appear in the consolidated financial statements at the end of the first fiscal period of the combination?
A) Goodwill.
B) Equipment.
C) Investment in Subsidiary.
D) Common Stock.
E) Additional Paid-In Capital.

Question

Quizplus · Accepted Answer

The "Investment in Subsidiary" account is eliminated in the consolidation process because the parent company's investment is replaced by the subsidiary's assets and liabilities in the consolidated financial statements.

Which One of the Following Accounts Would Not Appear in the Consolidated