Which of the following statements is correct? Consolidated statements:
A)show all the financial details of the subsidiary companies.
B)only show the financial position and performance of the parent company.
C)eliminate all transactions between the companies within the group.
D)do not show the minority interests.

Question

Quizplus · Accepted Answer

Consolidated statements are designed to present the financial position and performance of a group of companies as if they were a single entity. This involves eliminating all intercompany transactions among the entities within the group to avoid double counting of revenues, expenses, and balances that occur from transactions between the parent and subsidiary companies or among subsidiaries.

Which of the Following Statements Is Correct? Consolidated Statements