10. In your own words, describe the purpose of the [ADJ]
consolidation entry when the parent...
80.2K
Verified Solution
Link Copied!
Question
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.
Answer & Explanation
Solved by verified expert
3.5 Ratings (270 Votes)
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
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
