Which of the Following Statements Is Incorrect

question 30

Multiple Choice

Which of the following statements is incorrect?

• A) Where consolidated financial statements are prepared over a number of years, consolidation entries need to be made every time a consolidation worksheet is prepared.
• B) A consolidation worksheet is used to help the process of adding together the financial statements of the parent and its subsidiaries.
• C) Consolidation adjusting entries affect the ledger accounts of the parent and subsidiaries.
• D) There are no consolidated ledger accounts.

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Definitions:

Desired Return

The minimum return that an investor, project, or business aims to achieve from an investment or venture, factoring in risk and opportunity cost.

Investment

The act of allocating resources, usually money, in the expectation of generating an income or profit.

Absorption Costing

A financial recording technique that entails incorporating all costs associated with manufacturing, whether they are fixed or variable, into the product's pricing.

Selling Price

The amount of money charged for a product or service, typically enough to cover costs and generate profit.