Select the correct statement from the following:
A)Consolidation worksheet adjustments are not entered on the accounting records of either Parent or Sub.
B)Consolidation worksheet adjustments are entered on the accounting records of the Parent but not the Sub.
C)Consolidation worksheet adjustments are entered on the accounting records of the Sub but not the Parent.
D)Consolidation worksheet adjustments are entered on the accounting records of both the Parent and the Sub.

Question

Quizplus · Accepted Answer

Consolidation worksheet adjustments are made only for the purpose of preparing consolidated financial statements and are not entered on the accounting records of either parent or sub. They are temporary adjustments made at the time of consolidation and are not permanent entries in the books of either company.

Select the Correct Statement from the Following