Asked by Derise Major on May 21, 2024
Verified
What is the purpose of Consolidation Entry A in a consolidation worksheet?
Consolidation Entry A
An accounting entry made to adjust or combine financial information from separate entities during consolidation.
Consolidation Worksheet
A tool used in the preparation of consolidated financial statements that helps in adjusting and combining the financial information of parent and subsidiary entities.
Purpose
The objective or intended outcome that an organization or plan is meant to achieve.
- Comprehend the rationale and methods involved in adjusting worksheets through consolidation entries.
Verified Answer
JG
jefeson garciaMay 27, 2024
Final Answer :
Consolidation Entry A is a worksheet entry that removes the excess payment from the parent's Investment account and assigns that excess payment to the specific accounts indicated by the fair-value allocation. It also assists in eliminating the parent's Investment account balance on the consolidation worksheet.
Learning Objectives
- Comprehend the rationale and methods involved in adjusting worksheets through consolidation entries.