Which of the Following Is a Limitation of Consolidated Financial

question 25

Multiple Choice

Which of the following is a limitation of consolidated financial statements?

• A) Consolidated statements provide no benefit for the stockholders and creditors of the parent company.
• B) Consolidated statements of highly diversified companies cannot be compared with industry standards.
• C) Consolidated statements are beneficial only when the consolidated companies operate within the same industry.
• D) Consolidated statements are beneficial only when the consolidated companies operate in different industries.