When a parent-subsidiary relationship exists, the consolidated statements include:

Question

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When a parent-subsidiary relationship exists, the consolidated financial statements include the balance sheet, income statement, and statement of cash flows for the parent company and its subsidiaries. This is because consolidation is the process of combining the financial statements of the parent and its subsidiaries as if they were a single entity. Therefore, all of the above financial statements are included in the consolidated financial statements.

When a Parent-Subsidiary Relationship Exists, the Consolidated Statements Include