Which of the Following Is TRUE of Consolidated Statements

question 133

Multiple Choice

Which of the following is TRUE of consolidated statements?

• A) They combine the balance sheets, income statements, and statements of cash flows of the parent company with those of its peer group firms.
• B) They combine the balance sheets, income statements, but not the statements of cash flows of the subsidiary company using the consolidation method.
• C) They combine the balance sheets, income statements, and statements of cash flows of the subsidiary company with those of its investee firms.
• D) They combine the balance sheets, income statements, and statements of cash flows of the parent company with those of its controlling interest affiliates.

---

Definitions:

Secondary Sector

Part of the economy that involves industrial activity, including manufacturing and construction, that processes raw materials into finished goods.

Economy

The large set of interrelated production, consumption, and exchange activities that aid in determining how scarce resources are allocated.

Salmon Processing

The industrial activity of preparing salmon for market, involving cleaning, canning, freezing, or smoking the fish.

North Coast

A generic term that refers to the northern coast of a country or region, often characterized by its geographical features or cultural attributes.