Financial statements that show the financial statements of all entities under the parent's control,including all subsidiaries are called:
A)Comprehensive financial statements
B)Consolidated financial statements
C)Equity financial statements
D)Statement of owner's equity
E)Investor financial statements

Question

Quizplus · Accepted Answer

Consolidated financial statements show the financial position and performance of a parent company and all its subsidiaries as a single entity. This is done by adding together the assets, liabilities, revenues, and expenses of all the subsidiary companies and eliminating any intercompany transactions or balances. This provides a more accurate picture of the overall financial health of the entire group of companies. Comprehensive financial statements, equity financial statements, statement of owner's equity, and investor financial statements do not necessarily include information from all subsidiary companies.

Financial Statements That Show the Financial Statements of All Entities