A Comparative Financial Statement

question 89

Multiple Choice

A comparative financial statement:

• A)Places the balance sheet,the income statement,and the statement of cash flows side-by-side in order to compare the results.
• B)Places two or more years of a financial statement side-by-side in order to compare results.
• C)Places the financial statements of two or more companies side-by-side in order to compare results.
• D)Places the dollar amounts next to the percentage amounts of a given year for the income statement.

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Definitions:

Short-form Merger

A method of merger where a parent company merges with a subsidiary and doesn't require approval from the subsidiary's shareholders.

Parent Corporation

A company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Subsidiary's Stock

Shares of ownership in a company which is controlled by another firm, where the controlling firm owns more than 50% of the subsidiary's stock.

Preliminary Injunction

A temporary court order issued at the beginning of a legal action, prohibiting a party from performing a specific act until a final decision is made.