Consolidated financial statements are used to:

Consolidated financial statements serve the purpose of presenting the financial position and results of operations of a parent company along with its subsidiaries as a single entity. This approach is essential in providing a comprehensive view of the financial health of the entire corporate group rather than just the individual entities.

In consolidating the financial results, all intercompany transactions between the parent and its subsidiaries are eliminated. This means that any revenues or expenses that occur between the entities within the group do not skew the financial outcomes, allowing stakeholders to assess the overall profitability and financial stability of the entire organization. By doing so, consolidated financial statements give investors, analysts, and other stakeholders a clearer picture of the group's true performance and financial condition, facilitating better decision-making.

The other choices involve aspects that do not align with the primary purpose of consolidated financial statements, such as focusing only on individual entities or aspects like liabilities, which do not adequately reflect the essence of consolidation.