Under the economic entity concept, consolidated financial statements are intended primarily for the benefit of the

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The economic entity concept implies that a parent company and its subsidiaries are essentially one economic entity. Therefore, consolidated financial statements combine the financial information of the parent company and its subsidiaries, presenting the financial position and performance of the entire group. Consolidated financial statements are important to all stakeholders, including stockholders of the parent company, creditors of the parent company, and minority stockholders of the subsidiaries. Therefore, D is the best choice as it includes all the options.

Under the Economic Entity Concept, Consolidated Financial Statements Are Intended