One commonly cited weakness of Consolidated Financial Statements is that:
A)they lack completeness.
B)they are of little use to end-users.
C)divergent accounting practices between Parent and its Subsidiary may often yield misleading results.
D)a poor performance by one or more subsidiaries can be masked through the aggregation process.

Question

Quizplus · Accepted Answer

Consolidated financial statements aggregate the financials of the parent and its subsidiaries, which can mask poor performance by one or more subsidiaries, making it difficult to assess the performance of individual entities.

One Commonly Cited Weakness of Consolidated Financial Statements Is That