Which of the Following Regarding the Preparation of Consolidated Financial

question 64

Multiple Choice

Which of the following regarding the preparation of Consolidated Financial Statement(s) is/are correct?

• A)Once the parent company prepares Consolidated Financial Statements,it no longer needs to prepare financial statements for its own activities.
• B)Only the subsidiaries are required to prepare Financial Statements.
• C)Consolidated Financial Statements are required by the Parent Company for reporting purposes only;each company must continue to prepare its own Financial Statements.
• D)Consolidated Financial Statements are required only when both companies are publicly traded)

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Definitions:

Years

Units of time equal to 365 days (or 366 days in a leap year), used to measure the passage of time.

Black Plague

A devastating global epidemic of bubonic plague that struck Europe and Asia in the mid-14th century, killing millions.

Pope Clemens VI

A 14th-century pontiff of the Catholic Church, known for his efforts to protect Jews during the Black Death and his patronage of the arts.

Pure Air

Clean and uncontaminated air, free from pollutants and harmful substances.