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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Definitions:

Preventive Maintenance

A schedule of planned maintenance actions aimed at preventing breakdowns and failures of equipment before they occur.

Receivables

Receivables, also known as accounts receivable, are amounts owed to a business by its customers for goods or services delivered but not yet paid for.

Root-Cause

The fundamental reason for the occurrence of a problem or event.

Cost Drivers

Factors or activities that have a direct impact on the cost of a product or service, influencing how much resources are used and the overall cost incurred.