What are the major consolidation concepts?
A) Entity, partnership and parent.
B) Equity, control and ownership.
C) Parent-entity, ownership and proprietary.
D) Entity, parent-entity and proprietary.
E) None of the given answers.

Question

Quizplus · Accepted Answer

The major consolidation concepts are entity, parent-entity and proprietary. Entity refers to any organization that has its own set of financial statements. Parent-entity refers to a company that owns more than 50% of another company, known as the subsidiary. Proprietary refers to what portion of a subsidiary's profits belong to the parent company, based on its level of ownership. Choice D encompasses all three of these concepts.

What Are the Major Consolidation Concepts