The process of preparing the combined financial statements of a group of entities is known as:

The process of preparing the combined financial statements of a group of entities is known as Consolidation.

Here are the steps to understand this:

1. Group of Entities: This refers to a parent company and its subsidiaries. The parent company is the entity that controls the other entities (subsidiaries).

2. Financial Statements: These are reports prepared by a company's management to present the financial performance and position at a point in time. A general purpose set of financial statements usually includes a balance sheet, income statements, cash flow statement, and notes to accounts.

3. Combined Financial Statements: This is a method of accounting that combines the financial statements of two or more affiliated companies. A parent company organizes the combined statement to present a view of the financial status of the whole group of companies as a single economic entity.

4. Consolidation: This is the process of combining the financial statements of a parent company and its subsidiaries into one set of financial statements. It provides an aggregated look at the financial