Consolidated Financial Statements Are Prepared When a Company Owns ________

question 6

Multiple Choice

Consolidated financial statements are prepared when a company owns ________ of the common stock of another company.

• A)between 20% and 50%
• B)50% or more
• C)more than 50%
• D)more than 90%

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Definitions:

Asset

An economic resource owned or controlled by an individual or corporation, expected to provide future benefits.

Liability

Economic responsibilities or liabilities an organization has to other parties, which require repayment over a period via the exchange of economic assets.

Equity

The value of an owner's interest in a property or business, calculated by subtracting liabilities from assets.

Debits

Entries on the left-hand side of an account that represent the increase in assets or expenses or a decrease in liabilities, equity, or income.