Which of the following stockholders equity accounts are eliminated during the consolidation process?
A) Common Stock of the subsidiary
B) Preferred Stock of the subsidiary
C) Additional Paid-in Capital of the subsidiary
D) All of the above

Question

Quizplus · Accepted Answer

All of the above stockholders equity accounts of the subsidiary are eliminated during the consolidation process. This is because the parent company only reports consolidated financial statements, which means that the equity accounts of the subsidiary are combined with the equity accounts of the parent company. Therefore, any subsidiary equity accounts are no longer separate on the consolidated financial statements.

Which of the Following Stockholders Equity Accounts Are Eliminated During