When a Parent-Subsidiary Relationship Exists, the Consolidated Statements Include

question 160

Multiple Choice

When a parent-subsidiary relationship exists, the consolidated statements include:

• A) the balance sheet, income statement and the statement of cash flows.
• B) only the balance sheet.
• C) only the income statement.
• D) only the balance sheet and the income statement.

---

Definitions:

Stock Split

A corporate maneuver where a firm expands its existing shares into a greater quantity to increase the shares' liquidity.

Trading Range

The range within which a security’s price fluctuates over a given period, indicating the highest and lowest prices reached.

Outstanding Shares

The total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Flotation Costs

Flotation costs are the expenses incurred by a company in issuing new securities, including underwriting fees, legal fees, and registration fees.