1. Who are the primary users of consolidated financial statements of an entity?

2. What are the limitations of consolidated financial statements?

3. Explain the differences between direct control and indirect control of an entity.

4. GAAP requires full consolidation of financial statements when, an entity has 100 percent interest. What two special accounts must appear in consolidated statements and how are they reported?

5. How do you treat consolidated net income when?

1. All subsidiaries are wholly owned

2. One or more of the consolidated subsidiaries is less than wholly owned