The Process of Aggregating Individual Sets of Financial Statements to Produce

Multiple Choice

The process of aggregating individual sets of financial statements to produce consolidated financial statements requires:

A) that no adjustments be entered into the individual ledger accounts of entities in the group
B) balance sheet date adjusting journal entries to be recorded in the ledger accounts of the subsidiaries
C) accruals of expenses and revenue,directly into the retained earnings ledger account of the parent entity
D) balance sheet date adjusting entries directly into the ledger accounts of the parent entity only.