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Cornerstones of Financial Accounti...
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Cornerstones of Financial Accounti...
What account title will not appear on consolidated financial statements?
a. Investment in MJK Corporation (35% ownership)
b. Inventory
c. Investment in EBL Corporation (80% ownership)
d. Common Stock
The account title that will not appear in the consolidated financial statement is to be determined.
Consolidated financial statements −
These are defined as the "Financial statements of a group in which the liabilities, assets, income, equity, cash flows and expenses of the subsidiaries and the parent company are presented as those of a single economic entity"
So, the consolidated financial statements are required when over 50% of the common stock of another corporation is owned.
These statements provide a comprehensive overview of the operations of a company...
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