Consolidation Accounting Is the Way to Combine the Financial Statements

question 71

True/False

Consolidation accounting is the way to combine the financial statements of two or more companies that have the same owners.

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Definitions:

Assets

Properties (resources) of value owned by a business (cash, supplies, equipment, land).

Liabilities

Obligations that come due in the future. Liabilities are the financial rights or claims of creditors to assets.

Departmental Accounting

An accounting method that tracks the income and expenses of individual departments within a company, helping in performance assessment and budgeting.

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations.