In consolidated financial statements:
A) the parent's and subsidiary's financial statements are reported on a separate basis.
B) the parent's and subsidiary's financial statements are reported on a combined basis.
C) financial statements are reported on an industry-wide basis.
D)none of the above.

Question

Quizplus · Accepted Answer

In consolidated financial statements, the parent's and subsidiary's financial statements are reported on a combined basis, which means that the financial information is presented as if the parent company and its subsidiaries were a single economic entity. This is achieved by adding together the assets, liabilities, revenues, and expenses of the parent and its subsidiaries, and eliminating any intercompany transactions and balances.

In Consolidated Financial Statements