What Does Push-Down Accounting Refer To

question 43

Multiple Choice

What does push-down accounting refer to?

• A)Writing down assets where value is impaired
• B)Applying the lower of cost or market approach
• C)Recording fair values on a subsidiary's books after a business combination
• D)Recording all consolidation adjustments on the books of the subsidiary

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Definitions:

Chattel Mortgage

A form of secured loan where personal movable property is used as collateral for the loan, without surrendering possession of the property.

Conditional Sales Contract

A contractual arrangement in which the sale of a property or item is not finalized until all the conditions outlined in the contract are met.

Purchase Money Securities Interest

A legal claim that allows a lender to have priority in a debtor's asset, provided the loan was used to purchase the asset.

Security

A document or other thing that stands as evidence of title to or interest in the capital, assets, property, profits, earnings, or royalties of any person or company, including any document commonly known as a security.