During the consolidation process, it may be necessary to make the following adjustments to the individual statements:
A) business combination valuation entries.
B) pre-acquisition entries.
C) business combination valuation entries and pre-acquisition entries in the individual journals of the parent and the subsidiaries.
D) business combination valuation entries and pre-acquisition entries in the consolidation worksheet.

Question

Quizplus · Accepted Answer

The consolidation worksheet is the document where the financial statements of the parent company and its subsidiaries are combined. Therefore, any necessary adjustments related to business combination valuation entries and pre-acquisition entries should be made in this worksheet to ensure accurate consolidation. Adjustments made in the individual journals of the parent and subsidiaries may not be reflected in the consolidated financial statements.

During the Consolidation Process, It May Be Necessary to Make