Consolidated Financial Statements Are Useful to All of the Following

question 169

Multiple Choice

Consolidated financial statements are useful to all of the following except

• A) creditors of subsidiary companies.
• B) management of the parent company.
• C) stockholders of the parent company.
• D) board of directors of the parent company.

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Definitions:

Net Income

Net income is the total earnings of a company after deducting all expenses, taxes, and losses, indicating the company's profitability over a specific period.

Ending Inventory

The value of the goods available for sale at the end of an accounting period.

FOB Destination

Freight terms in which the seller pays the transportation costs from the shipping point to the final destination.

Net Income

The total earnings of a company after deducting all expenses and taxes from total revenue.