The process of preparing consolidated financial statements requires that:

Select one:

A.

no adjustments be made to the individual financial statements or ledger accounts of the entities in the group.

B.

adjusting journal entries be recorded in the ledger accounts of the parent only.

C.

accruals of expenses and revenues be recorded directly into the retained earnings account of the parent entity.

D.

adjusting journal entries be recorded in the ledger accounts of the subsidiaries only.

Clear my choice