Which of the following accounts CANNOT be altered by a consolidation adjusting entry?a.Accounts receivableb.Income tax payablec.Deferred tax assetd.Revenue

The answer is d. Revenue.

Here's why:

a. Accounts Receivable: This account can be altered by a consolidation adjusting entry. For example, if a parent company sells goods to a subsidiary, the parent company will record this as a sale and increase its accounts receivable. However, during consolidation, this intercompany transaction needs to be eliminated to avoid double counting. Therefore, a consolidation adjusting entry will decrease the accounts receivable.

b. Income Tax Payable: This account can also be altered by a consolidation adjusting entry. For instance, if the parent company and its subsidiaries have different tax rates, the consolidation process may require adjustments to the income tax payable account to reflect the consolidated tax expense.

c. Deferred Tax Asset: This account can be altered by a consolidation adjusting entry as well. Deferred tax assets arise from temporary differences between the tax basis of assets and their reported amount in the financial statements. These differences may need to be adjusted during the consolidation process.

d. Revenue: This account cannot be altered by a consolidation adjusting entry. Revenue is recognized when it is earned, not when cash is received. Therefore, consolidation adjusting entries do not affect the revenue account because they do not change the fact that revenue has been earned.