What term is used to describe combining the financial statements of all subsidiaries,both foreign and domestic,into the financial statements of the parent?
A)Convergence
B)Hedging
C)Consolidation
D)Incorporation

Question

Quizplus · Accepted Answer

Consolidation is the term used to describe combining the financial statements of all subsidiaries, both foreign and domestic, into the financial statements of the parent. This allows for a comprehensive view of the financial health and performance of the company as a whole. Convergence refers to the adoption of international accounting standards, hedging is a risk management strategy, and incorporation refers to the legal process of creating a separate entity.

What Term Is Used to Describe Combining the Financial Statements