Consolidation Worksheet Preparation Procedures
Which of the following is not a procedure to prepare a consolidation worksheet?
a. Arrange worksheet data in the same rows and columns on each sheet.
b. Copy one of the source worksheets to create a consolidation worksheet.
c. Delete the contents of the cells to be consolidated.
d. Delete formulas that will be used on the consolidated worksheet.
Final Answer:
Among the options provided, the incorrect procedure for preparing a consolidation worksheet is c. Delete the contents of the cells to be consolidated. The purpose of a consolidation worksheet is to combine or summarize data, not to delete it.Explanation: The procedure that is not part of preparing a consolidation worksheet is c. Delete the contents of the cells to be consolidated. The purpose of a consolidation worksheet is to combine information from different worksheets, rather than deleting existing data. When preparing a consolidation worksheet, it is important to arrange the worksheet data in the same rows and columns to maintain consistency (option a). You may also choose to copy one of the source worksheets to create a consolidation worksheet (option b). While it is true that you may need to delete formulas that will be used on the consolidated worksheet (option d), this involves replacing them with consolidation formulas, not removing them entirely without replacement.
Preparing a consolidation worksheet is a crucial step in combining financial information from multiple sources for reporting and analysis purposes. It allows for a consolidated view of the data, which can provide insights into the overall financial health of an organization.