Consolidated Financial Statements Are Useful Because

question 89

Multiple Choice

Consolidated financial statements are useful because

• A) investors of the parent company want a clear financial picture of the total economic entity.
• B) minority shareholders need the consolidated information to make good investment decisions.
• C) they are much more detailed than the statements for the individual companies.
• D) the parent and subsidiaries constitute a single legal entity, and the financial statements should reflect that fact.

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Definitions:

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, specifically the order of words and phrases.

Semantics

The study of meaning in language, including the analysis of the meanings of words, phrases, and sentences.

Bonobo

A species of great ape known for its peaceful behavior, matriarchal societies, and complex social interactions; genetically similar to humans.

Metalinguistic Awareness

The capacity to contemplate and analyze the essence and roles of language.