Question

Consolidation accounting:______

a. reports the receivables and payables of the parent company only.
b. eliminates all liabilities.
c. combines the accounts of the parent company and those of the subsidiary companies.
d. all of the above.

Answer 1

c. combines the accounts of the parent company and those of the subsidiary companies.

Step-by-step explanation:

Consolidation accounting is the accounting in which the parent company accounts are combined with the subsidiary companies accounts. It can be applied at the time when the parent company takes more than 50% of the shares of the subsidiary company

Therefore as per the given situation, the option c is correct

And, the same is to be considered