When a company owns more than 50% of the common stock of another company
A) affiliated financial statements are prepared.
B) consolidated financial statements are prepared.
C) controlling financial statements are prepared.
D) significant financial statements are prepared.

Question

Quizplus · Accepted Answer

When a company owns more than 50% of the common stock of another company, consolidated financial statements are prepared. This means that the financial statements of both companies are combined as if they were one entity. The purpose of this is to provide a more accurate picture of the financial position and performance of the overall group, rather than just the individual companies themselves.

When a Company Owns More Than 50% of the Common