Question

in preparing the consolidated financial statements,which of the follwing accounts must be eliminated as part of the preparation of consolidated working paper

a) only sales revenue and cost of goods sold

b) recivables and payables but not revenue:expenses gain or losses

c all revenue and expenses gain losses receivables and payables

d) all revenue expenses gain and losess but not reveivables and payables

Answer 1

please find below the solution... let me know if you need any clarification..

correct answer is option : C) all revenues, expenses, gains, losses, receivables, and payables

Under consolidation all the revenue, expenses, gain losses receivable and payable need to be eliminated. therefore correct answer is option C.