Consolidation Entries are used to combine the financial information of multiple entities into a single set of financial statements. This process is typically used by larger companies or businesses that have numerous legal entities, allowing them to report consolidated results and make strategic decisions based on the entire organization’s performance. Consolidation entries involve making adjustments to ensure the financial data provides an accurate picture of the combined organization by removing transactions between related parties and eliminating inter-company liabilities. It’s important to remember that consolidation entries do not guarantee accuracy – it’s essential to consider the implications of each adjustment carefully in order to ensure accurate reports.