Basics of economic entity concept

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Under the economic entity concept, which of the following statements is true?

a) The accounting emphasis in preparing consolidated financial statements is placed on the business combination being formed.

b) The accounting emphasis in preparing consolidated financial statements is placed on the parent's investment.

c) The objective of consolidated financial statements is to serve as a report to the stockholders of the parent company.

d) The economic unit concept is a hybrid of the proportionate consolidation concept and the parent company concept.

Reference no: EM13152217

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