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Why are financial statements consolidated?

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Why are consolidated Financial Statements Prepared? Give an example.

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Solution Summary

A simple, clear explanation of the consolidation of financial statements, about 100 words (paragraph).

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Consolidated financial statements are prepared because of the common ownership and control. Since both firms are owned and controlled by the same owners, their performance and ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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