Which of the following are NOT eliminated in the preparation of consolidated financial statements?
A) Intercompany sales
B) The account for the parent company's investment in the subsidiary
C) Loans from the parent to the subsidiary
D) Assets of the subsidiary

Question

Quizplus · Accepted Answer

In the preparation of consolidated financial statements, all intercompany transactions and balances such as intercompany sales (A), the account for the parent company's investment in the subsidiary (B), and loans from the parent to the subsidiary (C) are eliminated to avoid double counting. However, the assets of the subsidiary (D) are not eliminated; instead, they are combined with the assets of the parent company to present the financial position of the entire group as a single economic entity.

Which of the Following Are NOT Eliminated in the Preparation