Asked by Miranda Wilkerson on Jun 23, 2024
Verified
Totals and subtotals in a consolidation worksheet are derived by adding/subtracting down the group column.
Consolidation Worksheet
A tool used in the preparation of consolidated financial statements that helps in adjusting and eliminating the financial information of the parent company and its subsidiaries.
Totals and Subtotals
Sums presented in financial statements or reports that represent the aggregation of financial data, with subtotals used to group related items together under a common category.
- Recognize the essential requirement to avoid double counting when consolidating financial statements of parent and subsidiary entities.
Verified Answer
AL
Amber LynetteJun 27, 2024
Final Answer :
True
Explanation :
Totals and subtotals in a consolidation worksheet are derived by adding or subtracting down the group column, so all the amounts in that particular column are aggregated to arrive at the total or subtotal.
Learning Objectives
- Recognize the essential requirement to avoid double counting when consolidating financial statements of parent and subsidiary entities.