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10. In your own words, describe the purpose of the [ADJ] consolidation entry when the parent...

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Accounting

10. In your own words, describe the purpose of the [ADJ]consolidation entry when the parent company applies the cost methodof pre-consolidation bookkeeping.

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A consolidation is a summarization of the financial statementsof a parent company and those of its subsidiaries This informationis needed by investors and creditors to evaluate the results of anentity and all of its ownership interestsConsolidation is the process of combining the financial resultsof several subsidiary companies into the combined financial resultsof the parent company This method is typically used when a parententity owns more than 50 of the shares of another    See Answer
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