Concept explainers
(a)
Balance Sheet: Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business.
Asset: Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.
To Explain: The assets and stockholder’s equity balances which are eliminated during the preparation of the consolidated balance sheet of a parent and wholly owned subsidiary company.
b)
To Explain: The reason for eliminating those two items.
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