Sun co. is a wholly owned subsidiary of star co. both, Ask an Expert

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Sun Co. is a wholly owned subsidiary of Star Co. Both companies have separate general ledgers, and prepare separate financial statements. Sun requires stand-alone financial statements. Which of the following statements is correct?

A: Consolidated financial statements should be prepared for both Star and Sun.

B: Consolidated financial statements should only be prepared by Star and not by Sun.

C: After consolidation, the accounts of both Star and Sun should be changed to reflect the consolidated totals for futrue ease in reporting.

D: After consolidation, the accounts of both Star and Sun should be combined together into one general-ledger accounting system for future ease in reporting.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M978777

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