The Parent Company Concept of Consolidation Represents the View That

question 17

Multiple Choice

The parent company concept of consolidation represents the view that the primary purpose of consolidated financial statements is:

• A) to provide information relevant to the controlling stockholders.
• B) to represent the view that the affiliated companies are a separate, identifiable economic entity.
• C) to emphasis control of the whole by a single management.
• D) to include only a portion of the subsidiary's assets, liabilities, revenues, expenses, gains, and losses.