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Which of the following principles are the basic principles followed by the consolidated income statement?
Select ALL that apply.
Suggested Answer: A
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32 comments · newest first
DI
Diane
11 months ago
Consolidated income statements include all income and expenses from both parent and subsidiaries.
PH
Phil
11 months ago
E is not a principle for consolidated statements, just FYI.
EV
Evangelina
11 months ago
Wait, is D really a thing? That sounds off.
RI
Ricki
12 months ago
I disagree with B, investment income should be included.
QU
Quentin
12 months ago
A and C are definitely correct!
JO
Joaquin
1 year ago
D seems wrong to me, but I’m not entirely confident about E either. I think we shouldn't include that investment income.
WE
Werner
1 year ago
I feel like C might be right too, but I can't recall if we always have to show that profit split.
SH
Shizue
1 year ago
I remember practicing a question similar to this, and I think B is correct because we usually ignore that investment income in consolidated statements.
LE
Leoma
1 year ago
I think option A is definitely one of the principles, but I'm not sure about the others.
DI
Dierdre
1 year ago
I'm not entirely sure about this one. I think the key principles are A, B, and C, but I'm a bit uncertain about whether investment income should be included or not. I'll need to double-check my understanding of consolidation.
LO
Loreta
1 year ago
Okay, I've got this. The basic principles are A, C, and E. The consolidated income statement includes all income and expenses of the parent and subsidiaries, shows the profit split between parent and other shareholders, and includes investment income from the subsidiary to the parent.
BE
Beula
1 year ago
This looks like a tricky question on consolidated financial statements. I'll need to carefully review the principles of consolidation to determine which ones are the basic ones followed in the consolidated income statement.
DO
Dorothy
1 year ago
Hmm, I'm a bit confused by the wording of the question. I'll need to think through each of the options carefully to figure out which ones are the core principles. Consolidation can get pretty complex.
LO
Lonna
1 year ago
Alright, time to put my consolidated income statement expertise to the test! I'm confident that A, C, and E are the correct answers. Now if only I could remember the difference between a parent and a subsidiary. Ah, the joys of accounting...
DO
Dottie
1 year ago
That's correct! The consolidated income statement combines the financial results of both the parent and subsidiary companies.
DO
Domonique
1 year ago
Remember, the parent company owns the subsidiary company.
CL
Clorinda
1 year ago
I think you're right! A, C, and E are the correct principles to follow.
AI
Aimee
2 years ago
Haha, this question is a real brain-teaser! I'm tempted to just choose all the options and see what happens. But seriously, I think A, C, and E are the way to go. Gotta love those tricky accounting principles, am I right?
AL
Alfreda
1 year ago
Let's go with A, C, and E then. Good choices!
SU
Susy
1 year ago
Yeah, those accounting principles can be tricky to navigate.
TA
Tamar
1 year ago
I think you're on the right track with A, C, and E.
FI
Fidelia
1 year ago
I agree, this question is definitely a brain-teaser!
GL
Glendora
1 year ago
I'm glad we're on the same page. Let's hope we got it right!
GL
Gladis
1 year ago
Yeah, those principles can definitely be confusing. But I agree with your choices.
KR
Kristal
1 year ago
I think A, C, and E are correct too. Accounting can be tricky!
OL
Olga
2 years ago
Wow, this question is really testing our knowledge of consolidated financial statements! I'm pretty sure A, C, and E are the right answers, but I'm a little unsure about B and D. Guess I'll have to brush up on my accounting rules before the exam.
AL
Alfreda
2 years ago
I think options A, C, and E are the correct principles. The consolidated income statement should include all of the parent's and subsidiaries' income and expenses, show the profit split between the parent's shareholders and other shareholders, and include investment income from subsidiary to parent.
BE
Becky
1 year ago
I think you're right, those principles make sense for a consolidated income statement.
BE
Becky
1 year ago
I agree, options A, C, and E are the correct principles to follow.
MA
Marshall
2 years ago
Hmm, that makes sense too. Let's review the principles again to make sure we understand them correctly.
SK
Skye
2 years ago
I disagree, I believe the correct answer is C) After profit for the period, show the profit split between amounts attributable to the parent's shareholders and other shareholders.
MA
Marshall
2 years ago
I think the answer is A) Include all of the parent's income and expenses plus all of the subsidiaries' income and expenses.