Asked by Franchezka Mendoza on Jun 14, 2024

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The sequential consolidation method uses a 'top down' approach.

Sequential Consolidation Method

A method of accounting that involves integrating the financial information of successive levels of subsidiaries within a group, typically starting with the parent company.

'Top Down' Approach

A strategy or method of analysis that starts at the highest level of data or information and works down to more detailed levels, often used in planning, problem-solving, and decision-making.

  • Understand the approaches and fundamental concepts related to multiple consolidation and the sequential consolidation process.
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Tiffany McCoyJun 14, 2024
Final Answer :
False
Explanation :
The sequential consolidation method uses a 'bottom up' approach, starting with the consolidation of the smallest subsidiaries and moving upwards.