An investor prepares a single set of financial statements which encompasses the financial results for both it and its investee because:
A)The investor has a controlling interest in its investee.
B)The investor has a passive interest in its investee.
C)The investor has an influential interest in its investee.
D)The investor has an active interest in its its investee.

Question

Quizplus · Accepted Answer

An investor having a controlling interest in its investee (generally resulting from more than 50% ownership) will prepare consolidated financial statements which encompass the financial results of both it and its investee.

An Investor Prepares a Single Set of Financial Statements Which