The consolidation process consists of all the following except:
A)Adding together the financial statements of two or more legally separate companies.
B)Eliminating intercompany transactions and holdings.
C)Closing the subsidiary's earnings into the parent's retained earnings.
D)Combining the accounts of separate companies,creating a single set of financial statements.

Question

Quizplus · Accepted Answer

The consolidation process includes adding together the financial statements of two or more legally separate companies, eliminating intercompany transactions and holdings, and combining accounts of separate companies to create a single set of financial statements. However, closing the subsidiary's earnings into the parent's retained earnings is not part of the consolidation process but rather a step in the elimination of the subsidiary's equity accounts.

The Consolidation Process Consists of All the Following Except