Accounting · Consolidated Financial Statements
Topaz Co owns 80% of Azur Co. At year-end, Topaz Co owes Azur Co $480. Which statement reflects how this intra-group balance is treated in the consolidated statement of financial position?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Intra-group balances are retained on the consolidated balance sheet to show accurate inter-company transactions
- 2Trade receivables and trade payables will both be adjusted by debiting trade receivables $480 and crediting trade payables $480
- 3Trade payables will be added together, removing the debt that Topaz Co owes to Azur Co✓
- 4All trade payables will be added together with no adjustment for the debt that Topaz Co owes Azur Co
Correct answer
Trade payables will be added together, removing the debt that Topaz Co owes to Azur Co
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Consolidated Financial Statements MCQs →Want more practice questions on Consolidated Financial Statements?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Consolidated Financial Statements