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When preparing a consolidated financial statement, what is included in the consolidated balance sheet?
- a)Only the assets and liabilities of the holding company.
- b)Only the assets and liabilities of the subsidiary companies.
- c)The assets and liabilities of the holding company and its subsidiaries.
- d)The assets and liabilities of the holding company, but not its subsidiaries.
Correct answer is option 'C'. Can you explain this answer?
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When preparing a consolidated financial statement, what is included in...
A consolidated balance sheet includes the assets and liabilities of both the holding company and its subsidiaries in a combined form.
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When preparing a consolidated financial statement, what is included in...
Consolidated Balance Sheet:
The consolidated balance sheet includes the assets and liabilities of the holding company and its subsidiaries. This is because when preparing consolidated financial statements, the holdings and subsidiaries are treated as a single economic entity.
Assets:
- The consolidated balance sheet will list all the assets of the holding company and its subsidiaries. This includes cash, accounts receivable, inventory, property, plant, and equipment, investments, etc. The total assets of the consolidated entity will be a sum of the assets of the holding company and its subsidiaries.
Liabilities:
- Similarly, the consolidated balance sheet will also include all the liabilities of the holding company and its subsidiaries. This includes accounts payable, long-term debt, accrued expenses, etc. The total liabilities of the consolidated entity will be a sum of the liabilities of the holding company and its subsidiaries.
Equity:
- In addition to assets and liabilities, the consolidated balance sheet will also show the equity of the consolidated entity. This includes the equity of the holding company and the equity of its subsidiaries. The equity section will show the ownership interests of the shareholders in the consolidated entity.
By including the assets, liabilities, and equity of both the holding company and its subsidiaries, the consolidated balance sheet provides a comprehensive view of the financial position of the entire consolidated entity.
The consolidated balance sheet includes the assets and liabilities of the holding company and its subsidiaries. This is because when preparing consolidated financial statements, the holdings and subsidiaries are treated as a single economic entity.
Assets:
- The consolidated balance sheet will list all the assets of the holding company and its subsidiaries. This includes cash, accounts receivable, inventory, property, plant, and equipment, investments, etc. The total assets of the consolidated entity will be a sum of the assets of the holding company and its subsidiaries.
Liabilities:
- Similarly, the consolidated balance sheet will also include all the liabilities of the holding company and its subsidiaries. This includes accounts payable, long-term debt, accrued expenses, etc. The total liabilities of the consolidated entity will be a sum of the liabilities of the holding company and its subsidiaries.
Equity:
- In addition to assets and liabilities, the consolidated balance sheet will also show the equity of the consolidated entity. This includes the equity of the holding company and the equity of its subsidiaries. The equity section will show the ownership interests of the shareholders in the consolidated entity.
By including the assets, liabilities, and equity of both the holding company and its subsidiaries, the consolidated balance sheet provides a comprehensive view of the financial position of the entire consolidated entity.
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When preparing a consolidated financial statement, what is included in the consolidated balance sheet?a)Only the assets and liabilities of the holding company.b)Only the assets and liabilities of the subsidiary companies.c)The assets and liabilities of the holding company and its subsidiaries.d)The assets and liabilities of the holding company, but not its subsidiaries.Correct answer is option 'C'. Can you explain this answer?
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When preparing a consolidated financial statement, what is included in the consolidated balance sheet?a)Only the assets and liabilities of the holding company.b)Only the assets and liabilities of the subsidiary companies.c)The assets and liabilities of the holding company and its subsidiaries.d)The assets and liabilities of the holding company, but not its subsidiaries.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about When preparing a consolidated financial statement, what is included in the consolidated balance sheet?a)Only the assets and liabilities of the holding company.b)Only the assets and liabilities of the subsidiary companies.c)The assets and liabilities of the holding company and its subsidiaries.d)The assets and liabilities of the holding company, but not its subsidiaries.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When preparing a consolidated financial statement, what is included in the consolidated balance sheet?a)Only the assets and liabilities of the holding company.b)Only the assets and liabilities of the subsidiary companies.c)The assets and liabilities of the holding company and its subsidiaries.d)The assets and liabilities of the holding company, but not its subsidiaries.Correct answer is option 'C'. Can you explain this answer?.
When preparing a consolidated financial statement, what is included in the consolidated balance sheet?a)Only the assets and liabilities of the holding company.b)Only the assets and liabilities of the subsidiary companies.c)The assets and liabilities of the holding company and its subsidiaries.d)The assets and liabilities of the holding company, but not its subsidiaries.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about When preparing a consolidated financial statement, what is included in the consolidated balance sheet?a)Only the assets and liabilities of the holding company.b)Only the assets and liabilities of the subsidiary companies.c)The assets and liabilities of the holding company and its subsidiaries.d)The assets and liabilities of the holding company, but not its subsidiaries.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When preparing a consolidated financial statement, what is included in the consolidated balance sheet?a)Only the assets and liabilities of the holding company.b)Only the assets and liabilities of the subsidiary companies.c)The assets and liabilities of the holding company and its subsidiaries.d)The assets and liabilities of the holding company, but not its subsidiaries.Correct answer is option 'C'. Can you explain this answer?.
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When preparing a consolidated financial statement, what is included in the consolidated balance sheet?a)Only the assets and liabilities of the holding company.b)Only the assets and liabilities of the subsidiary companies.c)The assets and liabilities of the holding company and its subsidiaries.d)The assets and liabilities of the holding company, but not its subsidiaries.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for When preparing a consolidated financial statement, what is included in the consolidated balance sheet?a)Only the assets and liabilities of the holding company.b)Only the assets and liabilities of the subsidiary companies.c)The assets and liabilities of the holding company and its subsidiaries.d)The assets and liabilities of the holding company, but not its subsidiaries.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of When preparing a consolidated financial statement, what is included in the consolidated balance sheet?a)Only the assets and liabilities of the holding company.b)Only the assets and liabilities of the subsidiary companies.c)The assets and liabilities of the holding company and its subsidiaries.d)The assets and liabilities of the holding company, but not its subsidiaries.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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