Which item is eliminated when preparing a consolidated worksheet?
A) Goodwill
B) Issued capital
C) Equipment acquisitions
D) Intragroup dividends

Question

Quizplus · Accepted Answer

Intragroup dividends are eliminated during the consolidation process because they are essentially payments made from one subsidiary to another within the same group. The purpose of consolidation is to present the financial information of the group as a whole, so any transactions between subsidiaries should be eliminated to avoid double counting. Goodwill, issued capital, and equipment acquisitions are not eliminated as they represent important elements of the consolidated financial statements.

Which Item Is Eliminated When Preparing a Consolidated Worksheet