According to the economic unit concept, the primary purpose of consolidated financial statements is to provide information that is relevant to:
A) majority stockholders.
B) minority stockholders.
C) creditors.
D) both majority and minority stockholders.

Question

Quizplus · Accepted Answer

The economic unit concept treats the group of parent and subsidiary companies as a single economic entity, thus the primary purpose of consolidated financial statements under this concept is to provide information that is relevant to both majority and minority stockholders, as it reflects the financial position and results of operations of the group as a whole.

According to the Economic Unit Concept, the Primary Purpose of Consolidated