The Process of Preparing Consolidated Financial Statements Requires That

question 38

Multiple Choice

The process of preparing consolidated financial statements requires that:

• A) adjusting journal entries be recorded in the ledger accounts of the parent only.
• B) adjusting journal entries be recorded in the ledger accounts of the subsidiaries only.
• C) accruals of expenses and revenues be recorded directly into the retained earnings account of the parent entity.
• D) no adjustments be made to the individual financial statements or ledger accounts of the entities in the group.

---

Definitions:

Memory Traces

A theoretical concept referring to the physical changes in the brain that represent a memory; also known as engrams.

Target Stimuli

Specific objects or events that the attention is directed towards in psychological experiments or therapies.

LTPs

Long-Term Potentiation, a long-lasting increase in synaptic strength between two neurons that is considered one of the cellular mechanisms that underlies learning and memory.

Flashbulb Memories

Highly detailed, exceptionally vivid 'snapshot' of the moment and circumstances in which a piece of surprising and consequential (or emotionally arousing) news was heard.