The two business entities involved in an investment in securities with controlling influence,for which consolidated financial statements are prepared,are known as:

A) Parent and Investor
B) Subsidiary and Investee
C) Consolidator and Parent
D) Parent and Subsidiary
E) Both are referred to as partners.

Parent and Subsidiary

A parent and subsidiary relationship exists when one company, the parent, owns more than half of another company, the subsidiary, granting control and often integrating operations or management.

Consolidated Financial Statements

Consolidated financial statements aggregate the financial information of a parent company and its subsidiaries, presenting it as if the group were a single entity.

Controlling Influence

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.