When a company owns more than 50% of the common stock of another company, Question 10 options: affiliated financial statements are prepared. significant financial statements are prepared. controlling financial statements are prepared. consolidated financial statements are prepared. A legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company is called Question 16 options: a bond debenture. trading on the equity. a term bond. a bond indenture. Solution Question 10 Solution- consolidated financial statements are prepared. Explanation- If company owns more than the 50% of common stock of another company is known as parent company. The company prepared the consolidated financial statements because consolidated financial statements shows or represent the liabilities and assets control by the parent company. Question 16 Solution- a bond indenture Explanation- Bond indenture is a legal contract between the trustee and issuer that specified the responsibility and scope of the trustee, borrower, and lender. .