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.

---

Definitions:

Refers

Refers pertains to the action of mentioning or alluding to something.

Categorical Propositions

Statements that assert or deny that all or some members of one category are included in another category.

Standard Form

A conventional, often simplified or agreed-upon format for presenting information, data, or arguments, making it easier to understand or analyze.

Non-categorical

Not belonging to a particular category or class.