BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
UNCOSOLIDATED FINANCIAL STATEMENTS
|
|
|
CONSOLIDATED FINANCIAL STATEMENTS
|
|
|
COMBINED FINANCIAL STATEMENTS
|
|
|
CONDENSED FINANCIAL STATEMENTS
|
Detailed explanation-1: -Answer and Explanation: Preparation of consolidated financial statements when a parent-subsidiary relationship exists is an example of the A) economic entity assumption.
Detailed explanation-2: -financial statements shall be adjusted before consolidating them.-The parent’s portion of equity of each subsidiary; Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between entities of the group.
Detailed explanation-3: -If a reporting entity is the parent alone, the reporting entity’s financial statements are referred to as ‘unconsolidated financial statements’ (see paragraphs 3–3).
Detailed explanation-4: -A consolidated financial statement takes the financial results of the subsidiaries and includes them in a single financial statement for the parent company, as if the parent company and the subsidiaries were one entity.