Consolidated Financial Statements Are Prepared When a Company Owns _________

question 15

Multiple Choice

Consolidated financial statements are prepared when a company owns _________ of the ordinary shares of another company.

• A) less than 20%
• B) between 20% and 50%
• C) less than 50%
• D) more than 50%

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Definitions:

Comparative Financial Statements

Financial statements that present the financial position, results of operations, and cash flows of an entity for multiple periods side-by-side for comparison.

Financial Statements

Financial statements are comprehensive reports created to provide insights into a company's financial performance, position, cash flows, and changes in equity over a specific period, typically including the balance sheet, income statement, statement of cash flows, and statement of changes in equity.

Vertical Analysis

A financial analysis technique that presents each item in a financial statement as a percentage of a base figure.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.