The SEC Requires Push-Down Accounting for SEC Filings of Subsidiaries

question 51

Multiple Choice

The SEC requires push-down accounting for SEC filings of subsidiaries when the subsidiary has no substantial publicly-held debt or preferred stock outstanding and

• A)the parent has substantial ownership (5% or greater).
• B)the parent has substantial ownership (20% or greater).
• C)the parent has substantial ownership (50% or greater).
• D)the parent has substantial ownership (90% or greater).

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Definitions:

Citrus Harvest

The collection or gathering of citrus fruits, such as oranges and lemons, which can significantly impact agricultural economies and markets.

Florida Orange

Refers to oranges produced in Florida, significant for their contribution to the U.S. juice market and sensitivity to weather-related events impacting prices.

Negative Earnings Surprises

Occurs when a company reports lower earnings than analysts' estimates, leading to potential stock price decline.

Abnormal Return

A financial term describing the difference between a security's expected return and its actual return, often due to unexpected news or events.