Question

Consolidated financial statements are based on the assumption that they represent the financial position and operating...

Consolidated financial statements are based on the assumption that they represent the financial position and operating resultsof a single economic entity.

True

False

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Answer #1

Answer : True

Explanation :1.genreally consolidated financial statements are prepared based on the assumption that they represent the financial position and operating results of a single economic entity 2.These financial statements are prepared based on the parent company and subsidiary company transactions 3.consolidated financial statements gives you the more clarity rather than preparing separately of both companies 4.in this process the inter company transactions are eliminated .5. These consolidated financial statements are prepared for the shareholders and creditors and other stakeholders.

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