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:

Financial Assistance

Support given in the form of money to individuals or organizations in need, often provided by governments, institutions, or private entities.

Dependency Theory

A social science theory proposing that economic development in a global context is structured by the exploitation and dependency relationships between wealthy, developed countries and poorer, underdeveloped nations.

Foreign Investment

The investment by individuals, businesses, or governments in assets or enterprises within a foreign country to gain a return.

Sociological Theory

A set of ideas that provides an explanation for human society, analyzing the patterns and structures that shape social behavior.