Multiple choice technology packaged enterprise solutions

The period end process of combining the financial results of separate subsidiaries with the parent company to form a single, combined statement of financial results is called ______________

  1. Consolidation

  2. Posting

  3. Reporting

  4. All the above
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A Correct answer
Explanation

Consolidation in financial accounting is the process of combining the financial statements of a parent company and its subsidiaries to present a single, unified view of the entity's financial position and results. This is a standard period-end accounting procedure.

AI explanation

Consolidation is the accounting process of combining the financial statements of a parent company and its subsidiaries into one set of combined financial statements, eliminating intercompany transactions/balances so the group is presented as a single economic entity. Posting refers to transferring journal entries into ledger accounts (a different, earlier step in the accounting cycle), and Reporting is the general act of producing financial statements/output, not specifically the combining process — neither is the specific period-end consolidation step described.

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