Which of the following are NOT eliminated in the preparation of consolidated financial statements?
A) Intercompany receivables
B) The account for the parent company's investment in the subsidiary
C) Intercompany sales and expenses
D) Assets of the subsidiary

Question

Quizplus · Accepted Answer

Assets of the subsidiary are not eliminated in the preparation of consolidated financial statements as they become part of the consolidated totals. Intercompany receivables, intercompany sales and expenses, and the account for the parent company's investment in the subsidiary are eliminated in order to avoid double-counting and to reflect the financial situation of the consolidated group accurately.

Which of the Following Are NOT Eliminated in the Preparation