An additional set of financial statements that combines the separate sets of financial statements for all entities within an economic entity is known as:
A) a concise financial report.
B) a condensed financial report.
C) consolidated financial statements.
D) combined financial statements.

Question

Quizplus · Accepted Answer

Consolidated financial statements combine the separate financial statements of all entities within an economic entity to provide a comprehensive view of the overall financial health of the organization. This is typically done when one entity has a controlling interest in one or more other entities, and is required by accounting standards to provide a complete picture of the economic entity's financial situation. The other options (concise financial report, condensed financial report, combined financial statements) do not accurately describe this type of statement.

An Additional Set of Financial Statements That Combines the Separate