Which of the following regarding the preparation of Consolidated Financial Statement(s)is/are correct?
A)Once the parent company prepares Consolidated Financial Statements,it no longer needs to prepare financial statements for its own activities.
B)Only the subsidiaries are required to prepare Financial Statements.
C)Consolidated Financial Statements are required by the Parent Company for reporting purposes only;each company must continue to prepare its own Financial Statements.
D)Consolidated Financial Statements are required only when both companies are publicly traded)

Question

Quizplus · Accepted Answer

Consolidated Financial Statements are prepared by the parent company to show the financial performance of the entire group, including all subsidiaries. Each company within the group still needs to prepare their own Financial Statements for legal and regulatory purposes.

Which of the Following Regarding the Preparation of Consolidated Financial