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:

Corporations

Legal entities that are separate from their owners, allowing them to own assets, incur liabilities, and conduct business in their own name.

Business Sales

The total receipts a company generates from selling its goods or services over a specific period of time.

Inheritance Laws

Legal rules and protocols that govern the distribution of an individual's estate upon their death.

Economic Equality

A state where all individuals in an economy have the same income and wealth levels, minimizing disparities.