According to the 7th Directive of the EU

question 23

Multiple Choice

According to the 7th Directive of the EU,

• A) proportional consolidation is not permitted.
• B) consolidation can only occur when one firm owns a majority of the shares with voting rights of another company.
• C) the definition of a group is a good example of a compromise.
• D) the Germans did not have to make many changes in their consolidation practices.

Identify the common tools of financial analysis such as ratio, horizontal, and vertical analysis.

Recognize the composition and importance of a financial statement analysis report including its key sections like executive summary, analysis overview, and assumptions.

Distinguish between internal and external users of financial information and their respective needs.

Understand the concept of horizontal and vertical analysis for comparing financial condition and performance over time or against a base amount.