Which of the following regarding the preparation of Consolidated Financial Statement is 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
Which of the following regarding the preparation of Consolidated Financial Statement is 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Which of the following regarding the preparation of Consolidated Financial Statement is
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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