Which of the following is true of consolidated statements? A. They combine the b

Question

Which of the following is true of consolidated statements?

A. They combine the balance sheets, income statements, and statements of cash flows of the parent company with those of its controlling interest affiliates.

B. They combine the balance sheets, income statements, but not the statements of cash flows of the subsidiary company using the consolidation method.

C. They combine the balance sheets, income statements, and statements of cash flows of the parent company with those of its peer group firms.

D. They combine the balance sheets, income statements, and statements of cash flows of the subsidiary company with those of its investee firms.

Explanation / Answer

They combine the balance sheets, income statements, and statements of cash flows of the parent company with those of its controlling interest affiliates. Option A is correct

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