The process of preparing the combined financial statements of a group of entities is known as:
A) aggregation.
B) combination.
C) consolidation.
D) accumulation.

Question

Quizplus · Accepted Answer

The correct term for the process of preparing the combined financial statements of a group of entities is consolidation. Aggregation refers to the process of combining multiple values into a single value, but it is not specific to financial statements. Combination is a term that could be used, but consolidation is the more common and precise term. Accumulation refers to the gradual increase or buildup of something, and is not related to the preparation of financial statements.

The Process of Preparing the Combined Financial Statements of a Group