Which of the Following Statements in Not Correct

question 23

Multiple Choice

Which of the following statements in not correct:

• A)A parent company is one that controls a subsidiary company
• B)A subsidiary company is one that is controlled by a parent company
• C)A corporate group comprises the parent company and each of its subsidiary companies
• D)A holding company is an alternative term for a nested subsidiary

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Definitions:

Income Statement

A report detailing a business's income and expenditures within a certain timeframe, culminating in either a net gain or a deficit.

Ratio Analysis

A quantitative analysis of information contained in a company's financial statements, used to evaluate financial health, performance, and trends.

Interpretation

Interpretation involves the process of explaining the meaning of information or data, often requiring a detailed analysis to translate complex information into more understandable terms.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its most liquid assets, without relying on inventory.