That is true. WordPress uses the folder name instead of the theme name that’s defined at the top of the style.css file. The reason is, it’s possible to have more than one theme with the same name installed on your server, but you can only have one theme with that folder name. That way WordPress knows for certain which theme to use as the parent. Here’s a bit from the WordPress Codex about child themes:
“The Template is the directory name of the parent theme. In this case, the parent theme is the TwentyFourteen theme, so the Template is twentyfourteen, which is the name of the directory where the TwentyFourteen theme resides. If you want to make a child of a theme with the directory name example-theme-name, then you would use Template: example-theme-name.” http://codex.wordpress.org/Child_Themes
If you have any questions or trouble, let me know.
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