Which of the following statements is true about consolidated financial statements
A. They are prepared by combining the financial statements of the parent and its subsidiaries line by line.
B. They are required to be prepared by all parent companies that have subsidiaries.
C. They reflect the financial position and performance of the parent company only.
D. They eliminate all intercompany transactions and balances.
Answer:D
Which of the following statements is true about consolidated financial statements
A. They are prepared by combining the financial statements of the parent and its subsidiaries line by line. B. They are required to be prepared by all parent companies that have subsidiaries. C. They reflect the financial position and performance of the parent company only. D. They eliminate all intercompany transactions and balances.