Which of the following terms is used to describe the combining of the financial statements of all subsidiaries, both foreign and domestic, into the financial statements of the parent?
A) Convergence
B) Hedging
C) Consolidation
D) Incorporation

Question

Quizplus · Accepted Answer

Consolidation refers to the combining of financial statements of all subsidiaries, both foreign and domestic, into the financial statements of the parent. Convergence refers to the process of adopting international accounting standards. Hedging refers to the practice of using financial instruments to mitigate risk. Incorporation refers to the legal process of forming a corporate entity.

Which of the Following Terms Is Used to Describe the Combining