Which of the following is/are true?
A)A firm that controls another entity prepares consolidated financial statements with that entity.
B)The consolidated financial statements reflect the results of the legally separate entities as if they were a single entity.
C)The consolidated financial statements eliminate intercompany balance sheet and income statement accounts and intercompany profit or loss on transactions between the entities.
D)Consolidated balance sheets consolidate all of the assets and liabilities of the controlled entity and then show the claim of noncontrolling shareholders against consolidated net assets as part of shareholders' equity.
E)all of the above

Question

Quizplus · Accepted Answer

All of the statements are true. A controlling entity prepares consolidated financial statements to reflect the results of all legally separate entities as if they were a single entity. Intercompany accounts are eliminated in consolidated financial statements, and consolidated balance sheets show all assets and liabilities of the controlled entity, including the claim of noncontrolling shareholders against the consolidated net assets as part of shareholders' equity.

Which of the Following Is/are True