The process of preparing the combined financial statements of a group of entities is known as:
A) aggregation.
B) consolidation.
C) accumulation.
D) combination.

Question

Quizplus · Accepted Answer

Consolidation is the process of combining the financial statements of multiple entities into a single set of financial statements that represents the entire group. Aggregation refers to the process of adding together similar items, such as sales figures, without regard to their origin. Accumulation refers to the continuous increase in the value of an asset over time. Combination refers to the act of merging two or more entities into one.

The Process of Preparing the Combined Financial Statements of a Group