When Preparing Consolidated Financial Statements, the Result of the Elimination

question 57

Multiple Choice

When preparing consolidated financial statements, the result of the elimination process generally is the

• A)restatement of the cash balance of each company due to intercompany transactions.
• B)presentation of only the transactions between the consolidated entity and others outside the entity.
• C)replacement of the investment account and the subsidiary's shareholders' equity with only the parent's share of the individual assets and liabilities of the subsidiary.
• D)posting the eliminations to both parent and subsidiary's accounts.
• E)posting the eliminations to the subsidiary's accounts, only.

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