Which of the Following Statements Is False Regarding Push-Down Accounting

question 12

Multiple Choice

Which of the following statements is false regarding push-down accounting?

• A) Push-down accounting simplifies the consolidation process.
• B) Fewer worksheet entries are necessary when push-down accounting is applied.
• C) Push-down accounting provides better information for internal evaluation.
• D) Push-down accounting must be applied for all business combinations under a pooling of interests.
• E) Push-down proponents argue that a change in ownership creates a new basis for subsidiary assets and liabilities.

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Definitions:

Electronic Check Presentment

A process that allows financial institutions to exchange digital images of checks instead of physical checks for faster processing.

Substitute Checks

Digital or paper reproductions of original checks that are legally equivalent for processing payments.

UCC

A complete collection of regulations that oversee business dealings within the United States, known as the Uniform Commercial Code.

Stop-Payment Order

A request made to a bank by an account holder to not pay out on a check or transaction previously issued or authorized.