Which of the Following Statements About the Direct Approach to Consolidation

question 43

Multiple Choice

Which of the following statements about the direct approach to consolidation is true?

• A)It can be used for both simple and complex consolidations.
• B)It is a more methodical and less intuitive approach than the worksheet approach.
• C)The starting point for preparing the consolidated financial statements is the financial statements for each of the parent and subsidiary companies.
• D)The starting point for preparing the consolidated financial statements is the trial balance for each of the parent and subsidiary companies.

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Definitions:

Previous Marriages

Marriages that an individual was part of before entering into their current marital relationship, which might influence their current conjugal life.

Joint Stepfamily

At least one child is the biological child of both parents, at least one child is the biological child of only one parent and the stepchild of the other parent, and no other type of child is present.

Mother-Stepfather

A family structure that includes a biological mother and her spouse, who is not the biological father of her children.

Father-Stepmother Family

A family structure where a child is raised by their biological father and a stepmother.