Which statement is false concerning a comparison of a parent's books and the consolidatedfinancial statements of the parent and its subsidiary, when the parent uses the complete equitymethod to report its investment in its subsidiary?The parent's net income equals consolidated net income.The parent's total assets are lower than consolidated total assets.O The parent's dividends for the year are lower than consolidated dividends.O The parent's retained earnings equals consolidated retained earnings.

Consolidation is the process of combining the assets, liabilities, and other financial elements of…

Which statement is false concerning a comparison of a parent's books and the consolidated financial statements of the parent and its subsidiary, when the parent uses the complete equity method to report its investment in its subsidiary? O The parent's net income equals consolidated net income. O The parent's total assets are lower than consolidated total assets. O The parent's dividends for the year are lower than consolidated dividends. O The parent's retained earnings equals consolidated retained earnings.

Which statement is false concerning a comparison of a parent's books and the consolidated financial statements of the parent and its subsidiary, when the parent uses the complete equity method to report its investment in its subsidiary? O The parent's net income equals consolidated net income. O The parent's total assets are lower than consolidated total assets. O The parent's dividends for the year are lower than consolidated dividends. O The parent's retained earnings equals consolidated retained earnings.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Which statement is false concerning a comparison of a parent's books and the consolidated
financial statements of the parent and its subsidiary, when the parent uses the complete equity
method to report its investment in its subsidiary?
The parent's net income equals consolidated net income.
The parent's total assets are lower than consolidated total assets.
O The parent's dividends for the year are lower than consolidated dividends.
O The parent's retained earnings equals consolidated retained earnings.

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