Consolidated financial statements are prepared when a parent-subsidiary relationship exists in recognition of the accounting con

Question

Alekssandra [29.7K]

3 years ago

11

Consolidated financial statements are prepared when a parent-subsidiary relationship exists in recognition of the accounting con

cept of A. Materiality. B. Entity. C. Verifiability. D. Going concern

Business

1 answer:

soldier1979 [14.2K] · Answer 1 · 2022-05-20T18:32:14+03:00

Answer:

The correct answer is letter "B": Entity.

Explanation:

The Accounting Entity principle or Economic Entity principle states that a commonly co-owned group of businesses can entitle to be a single entity with the purpose to generate a consolidated financial statement. A business entity could be considered to be a sole proprietorship, partnership, or corporation.