Which of the Following Regarding the Preparation of Consolidated Financial

question 14

Multiple Choice

Which of the following regarding the preparation of Consolidated Financial Statement is correct?

• A) Once the parent company prepares Consolidated Financial Statements, it no longer needs to prepare financial statements for its own activities.
• B) Only the subsidiaries are required to prepare Financial Statements.
• C) Consolidated Financial Statements are required by the Parent Company for reporting purposes only; each company must continue to prepare its own Financial Statements.
• D) Consolidated Financial Statements are required only when both companies are publicly traded.

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