A consolidated balance sheet refers to:
A)a balance sheet of a large firm that has numerous subsidiaries,each with its own balance sheet that have been combining into one all-encompassing balance sheet.
B)a balance sheet of a large firm that has combined the balance sheets fo all wholly owned and some partially owned subsidiaries into one separate balance sheet.
C)a balance sheet of a large firm that has combined the balance sheet of all partially owned subsidiaries into one separate balance sheet.
D)All of the above.

Question

Quizplus · Accepted Answer

A consolidated balance sheet is a financial statement that shows the combined assets, liabilities, and equity of a parent company and its subsidiaries. Option B is the correct definition as it states that the balance sheets of all wholly owned and partially owned subsidiaries have been combined into one separate balance sheet. Option A refers to a consolidated financial statement, but not necessarily a balance sheet. Option C is incorrect as it only refers to partially owned subsidiaries. Option D is incorrect as it includes option A, which may not necessarily refer to a balance sheet.

A Consolidated Balance Sheet Refers To