Business Consolidations Flashcards
(2 cards)
1
Q
Under the acquisition method, eliminating entries are made to
A
The investment account
Current-year changes in the investment account
Year-end reciprocal balance sheet accounts
Intercompany profits and losses
2
Q
Combined statements may be used to present the results of operations of
A
Both commonly controlled companies and companies under common management
Controlling financial interest resides with one of the companies included in the consolidation.
