Which of the following is true of the consolidation process?
A)Even though the initial accounting for asset acquisitions and 100% stock acquisitions differs, the consolidation process should result in the same balance sheet.
B)Account balances are combined when recording a stock acquisition so the consolidation is automatic.
C)The assets of the non-controlling interest will be predominately displayed on the consolidated balance sheet.
D)The investment in subsidiary account will be displayed on the consolidated balance sheet.

Question

Which of the following is true of the consolidation process?
A)​Even though the initial accounting for asset acquisitions and 100% stock acquisitions differs, the consolidation process should result in the same balance sheet.
B)​Account balances are combined when recording a stock acquisition so the consolidation is automatic.
C)​The assets of the non-controlling interest will be predominately displayed on the consolidated balance sheet.
D)​The investment in subsidiary account will be displayed on the consolidated balance sheet.

Quizplus · Accepted Answer

The Answer is A

Which of the Following Is True of the Consolidation Process