Asked by Timothy DeKorver on May 17, 2024

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The investment elimination entry to eliminate the investment in subsidiary asset is a standing consolidation worksheet adjustment and will not alter from year to year.

Investment Elimination Entry

An accounting entry made in the process of consolidating financial statements to remove the effects of intercompany investments and avoid double counting.

Subsidiary Asset

An asset owned by a subsidiary company, which itself is controlled by a parent company through ownership of more than half of its voting stock.

  • Comprehend the foundational concepts of creating consolidated financial statements, encompassing adjustments related to consolidation.
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Deanna BermudezMay 18, 2024
Final Answer :
True
Explanation :
The investment elimination entry is a standard and recurring entry made in the consolidation worksheet to eliminate the subsidiary's asset and equity accounts. It is a standing adjustment that remains the same from year to year until there are changes in the subsidiary's ownership or in the consolidation process.