When Preparing a Consolidated Income Statement

question 65

Multiple Choice

When preparing a consolidated income statement,

• A)only the revenues and expenses of the parent company are presented.
• B)the income from partially owned subsidiaries is excluded.
• C)all revenue and expense transactions between the parent and subsidiaries must be eliminated.
• D)intercompany transactions between affiliated companies do not have to be eliminated.

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Definitions:

Black Cats

Often associated with superstition, they are cats with completely black fur which some cultures consider to be either good or bad luck.

Good Luck

A wish for fortune or success.

Some

An undefined quantity or number of individuals or objects.

Truth-functional Compound

A compound statement whose truth value depends solely on the truth values of its components.