Define a parent company


Answer these questions about consolidation accounting:

1. Define a parent company. Define a subsidiary company.

2. Which company's name appears on the consolidated financial statements? How much of the subsidiary's stock must the parent own before reporting consolidated statements?

3. How do consolidated financial statements differ from the financial statements of a single company?

If possible, please give examples to better understand your answers.

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Accounting Basics: Define a parent company
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