In general, consolidated financial statements should be prepared

A) when a corporation owns more than 20% and less than 40% of the common stock of another company
B) when a corporation owns more than 50% of the common stock of another company
C) only when a corporation owns 100% of the common stock of another company
D) whenever the market value of the stock investment is significantly lower than its cost

Consolidated Financial Statements

Financial statements resulting from combining parent and subsidiary statements.

Common Stock

Equity securities representing ownership shares in a corporation, providing voting rights and a portion of profits through dividends.

Corporation

A legal entity separate from its owners, offering limited liability protection, the ability to raise capital through the sale of shares, and perpetuity.