The Process of Preparing Consolidated Financial Statements Requires That

Multiple Choice

The process of preparing consolidated financial statements requires that:

A) no adjustments be made to the individual financial statements or ledger accounts of the entities in the group.
B) adjusting journal entries are recorded in the ledger accounts of the subsidiaries only.
C) accruals of expenses and revenues are recorded directly into the retained earnings account of the parent entity.
D) adjusting journal entries are recorded in the ledger accounts of the parent only.