Business and Personal Finance Dictionary

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• CONSOLIDATED STATEMENTS
  
  Consolidated financial statements show the combined assets, liabilities, net worth, income, expense, net income, and cash flows for a related group of companies. Unlike simpler combined statements, consolidated statements do not merely show the aggregate of the values for each line item for all of the firms in the group. Instead, consolidated statements also reflect the elimination of intercompany transactions. Consolidated statements disregard the distinction between separate legal entities and treat a parent firm and its subsidiaries as a single economic entity.
  
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