Consolidated financial statements are prepared when a company owns _________ of the common stock of another company.
A) less than 20%
B) between 20% and 50%
C) less than 50%
D) more than 50%

Question

Quizplus · Accepted Answer

Consolidated financial statements are prepared when a company owns more than 50% of the common stock of another company. This means it has a controlling interest in the other company and is able to consolidate its financial statements with the parent company's financial statements. This allows for a more accurate picture of the financial health of the entire group.

Consolidated Financial Statements Are Prepared When a Company Owns _________