Consolidated Statement Assignment Answers
Consolidated Statement- The Calculations and Operations
In finance you will have to go through several topics which are unknown to you. In school life you will obviously go through topics which are included in your graduation syllabus. But topics like Consolidated Statement are not among the ones on which you are well acquainted with. So in that case, you will surely need some help. Now Consolidated Statement complete deals with calculations as it are the accumulation of all types of assets, liabilities of the parent and subsidiary firms. Students who are new in the subject often face problems in understanding what to keep and what not to keep in the chart.
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Consolidated Statement rules
Consolidated Statement homework answers mainly consist of what are the rules of calculating the total assets and liabilities. Consolidated Statement is also known as Income Statement. One thing that should be kept in mind is that that the statement is a sum of total income of the firm and its subsidiaries. Here the subsidiaries and the parent firm is all equal. Consolidated Statement has particular purposes:
- It provides information of the total assets & liabilities which are under the control of the parent company.
- It also shows the results or the final output of the total firm from this calculation.
Why is it so important?
In our Consolidated Statement assignment answers you will get to know the importance of it. The main benefit a firm gets from it is that it helps to hide the financial crisis of the firm. On the vendor’s, lender’s and creditor’s point of view it helps them to analyze and understand financial statement of the firm. So they are already aware how risky the firm can be in the future.
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