Which of the Following Statements Is Incorrect

Multiple Choice

Which of the following statements is incorrect?

A) in sequential consolidation the direct ownership interest of the immediate parent entity would be used to eliminate pre- acquisition capital and reserves
B) the most important principle underlying the multiple consolidation method is that indirect ownership interests are relevant only to post- acquisition profits and changes in reserves
C) the sequential consolidation method is less cumbersome to apply than the multiple consolidation method
D) sequential consolidation and multiple consolidation both generate exactly the same results