Which Term Refers to the Practice of Revaluing an Acquired

question 9

Multiple Choice

Which term refers to the practice of revaluing an acquired subsidiary's assets and liabilities to their fair values directly on that subsidiary's books at the date of acquisition?

• A)Fair value accounting
• B)Push-down accounting
• C)Fully adjusted method
• D)Reciprocal ownership

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for the end of an accounting period.

Account Balances

The amounts of money in a company's financial accounts at a specific point in time.

Unadjusted Trial Balance

A list of all accounts and their balances in a company's ledger before any adjusting entries are made.