The consolidation worksheet entries have an impact on:
A) the individual statement of the parent.
B) the individual statement of the subsidiaries.
C) the individual statements of the parent and its subsidiaries.
D) the consolidated financial statements.

Question

Quizplus · Accepted Answer

The consolidation worksheet entries are used to eliminate intercompany transactions and balances between a parent company and its subsidiaries in order to create consolidated financial statements. Therefore, the impact of these entries is only on the consolidated financial statements and not on the individual statements of the parent or the subsidiaries.

The Consolidation Worksheet Entries Have an Impact On