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:

Anecdotal Evidence

Information based on personal accounts or individual cases rather than reliable research or systematic analysis.

Generalized

A concept or condition that is widespread, not limited to a specific case, group, or situation, often referring to a broad or overall view.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Accurate Generalizations

Valid conclusions or predictions about a group based on observed patterns or evidence.