Consolidation worksheet adjusting entries are recorded:
A) in the general ledger of the parent entity.
B) in the general ledger of the subsidiary.
C) in the consolidation working papers.
D) none of the above.

Question

Quizplus · Accepted Answer

Consolidation worksheet adjusting entries are recorded in the consolidation working papers to adjust the financial statements of both the parent and subsidiary entities to reflect the consolidated financial position and results. These adjustments are made to eliminate any intercompany transactions and to ensure that the financial statements are prepared using the same accounting principles and methods. Therefore, option C is the correct answer.

Consolidation Worksheet Adjusting Entries Are Recorded