Which of the following accounts CANNOT be altered by a consolidation adjusting entry? a. Accounts receivable b. Revenue c. Income tax payable d. Deferred tax asset

The account that cannot be altered by a consolidation adjusting entry is the Income tax payable.

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 a receivable and the subsidiary will record a payable. During consolidation, these intercompany transactions are eliminated.

b. Revenue: This account can also be altered by a consolidation adjusting entry. If a parent company sells goods to a subsidiary, the parent company will record revenue and the subsidiary will record an expense. During consolidation, these intercompany transactions are eliminated.

c. Income Tax Payable: This account cannot be altered by a consolidation adjusting entry. The reason is that each entity within a consolidated group is responsible for its own income tax payable. Therefore, this account is not subject to intercompany eliminations.

d. Deferred Tax Asset: This account can be altered by a consolidation adjusting entry. Deferred tax assets and liabilities arise because of temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. During consolidation, these amounts may need to be adjusted.