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:

Reliability

The degree to which an assessment tool produces stable and consistent results over repeated uses or observations.

Validity

The extent to which a test, assessment, or measurement method accurately measures what it is intended to measure.

Theories of Intelligence

Various models and explanations proposed by psychologists to describe the nature, types, and capabilities of human intelligence.

Theorist

A person who formulates, defines, or innovates theories in their field of study, offering explanations or models based on observation and reasoning.