Business, 23.04.2020 01:19 shayshay7874

What is the best theoretical justification for consolidated financial statements?

Answers: 3

Show answers

Answers

Answer from: mbonham481

The options are given below:

A. In form the companies are one entity; in substance they are separate

B. In form the companies are separate; in substance they are one entity.

C. In form and substance the companies are one entity

D. In form and substance the companies are separate

The correct option is B.

Explanation:

Consolidated financial statements refer to the financial statements of an entity that has multiple divisions or subsidiaries. Therefore, companies often use the word consolidated loosely when carrying out financial statement reporting in a manner which refers to the overall reporting of their whole business collectively.

The Financial Accounting Standards Board defines consolidated financial statement reporting as reporting of an entity which possesses the structure of a parent company and subsidiaries.

The reason therefore, why the consolidated financial statements is used, is to present, basically for the benefit of the owners, stakeholders, and shareholders of the parent, the results of the financial position of the parent company and all its subsidiaries as if the consolidated group were a single economic entity.

Hence, though the parent company and its subsidiaries operate separately, they are reported as one entity in the consolidated financial statements.

Answer from: Quest

better off having an absolute

Answer from: Quest

Some disadvantages to leasing a car is that you are counting on someone to give you money every week or month depending on what you decided and if they don't have all of it well what if you needed that money now you as well have to pay not in full. a disadvantages to purchasing a new vehicle is if it is used then not all the time will absolutely everything work. its almost like a trail and era. although if it is a new car they will try to though all these specials and deals at you in your lease and it can be very overwhelming if you are not use to it.

Another question on Business

Business, 21.06.2019 21:00

Identify the management, organization, and technology factors responsible for slow adoption rates of internal corporate social networks.when a company decides to launch a social networking program the management, all need to be on board with the launch. from the ceo down to the shift or assistant manager everyone needs to know its coming and be excited. the organization of such a launch needs to be mapped out, and training provided for the new systems. within the company, they need to make sure the technology at hand (computers, tablets, and company phones), are all compatible with the system. when a company launches a new system, and the find that the employees are not adopting it, they need to investigate the reasons. is the management at all level's onboard? did we organize the launch properly? do we have the right technology for the system? things can goeither way but if

Answers: 2

Answer

Business, 22.06.2019 09:00

How does the plaintiff, mrs. wood, try to implicate the gun manufacturer ( who testifies, what do they say, what evidence is introduced)?

Answers: 2

Answer

Business, 22.06.2019 11:40

Select the correct answer. which is a benefit of planning for your future career? a.being less prepared after high school. b.having higher tuition in college. c.earning college credits in high school. d.ruining your chances of having a successful career.

Answers: 2

Answer

Business, 22.06.2019 14:30

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?