When a company controls the common shares of another company
A) affiliated financial statements are prepared.
B) consolidated financial statements are prepared.
C) controlling financial statements are prepared.
D) no financial statements are prepared.

Question

Quizplus · Accepted Answer

When a company controls the common shares of another company, it typically means it has a controlling interest, and consolidated financial statements are prepared to present the financial position and results of operations of the parent and its subsidiaries as a single entity.

When a Company Controls the Common Shares of Another Company