Consolidated Financial Statements

question 152

Multiple Choice

Consolidated financial statements:

• A)Show the results of operations,cash flows,and the financial position of all entities under a parent's control,including all subsidiaries.
• B)Show the results of operations,cash flows,and the financial position of the parent only.
• C)Show the results of operations,cash flows,and the financial position of the subsidiary only.
• D)Include the investments in the subsidiaries on the balance sheet.
• E)Do not include a balance sheet.

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Definitions:

Balance Sheet

A detailed statement that captures a business's assets, liabilities, and shareholder equity as of a specific date.

Time Period Assumption

The long life of a company can be reported in shorter time periods, such as months, quarters, and years.

Business Entity

A corporation, partnership, association, or any other legal entity engaged in economic activities, such as selling goods or services.

Quarters

A three-month period on a financial calendar that acts as a basis for reporting earnings and paying dividends.