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.

---

Definitions:

Productivity

The measure of efficiency in converting inputs into useful outputs, commonly evaluated in terms of the rate of output per unit of input.

Icons

Graphic symbols used to represent applications, functions, or features on a computer interface.

Alphabetical

An ordering scheme based on the sequence of letters in the alphabet, commonly used for sorting lists of words or names.

Contiguously

In a manner that involves elements being continuous or connected in sequence without interruption or gaps.