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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