Elimination entries appear only in the worksheets used to prepare the consolidated financial statements and not in the consolidated journal or the consolidated ledger.

Question

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Elimination entries are not posted in the consolidated journal or the consolidated ledger. They are only recorded in the worksheets used to prepare the consolidated financial statements to eliminate any intercompany transactions or balances between the parent company and its subsidiaries.

Elimination Entries Appear Only in the Worksheets Used to Prepare