Which of the Following Is True of Consolidated Statements

question 91

Multiple Choice

Which of the following is true of consolidated statements?

• A)They combine the balance sheets, income statements, and cash flow statements of the parent company with those of its peer group firms.
• B)They combine the balance sheets, income statements, and cash flow statements of the subsidiary company using the consolidation method.
• C)They combine the balance sheets, income statements, and cash flow statements of the subsidiary company with those of its investee firms.
• D)They combine the balance sheets, income statements, and cash flow statements of the parent company with those of its controlling interest affiliates.

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Definitions:

Restraint of Trade

Restraint of trade refers to any activity or agreement that restricts competition or the free operation of the market.

Geographical Restriction

Limitations placed on where a business can operate or where a person can live or work, often found in contracts or legal agreements.

Severable

Describes contract clauses that can be legally separated or isolated from the rest of the contract, allowing for parts of the contract to be invalidated or enforced independently.

Multiple Parts

Consisting of several components, elements, or sections that contribute to a whole.