A U.S. financial services company sets up a special purpose entity to buy accounts receivable from its clients. The financial services company should not consolidate the assets and liabilities of the SPE if:
A) The SPE is not a variable interest entity.
B) Holders of the SPE's stock are also clients of the financial services company.
C) The SPE's total equity is more than 50% of the SPE's total assets.
D) The financial services company guarantees the SPE's debt.
Correct Answer:
Verified
Q10: Following U.S. GAAP, a company consolidates its
Q11: Following U.S. GAAP, if a company owns
Q12: Petron, a U.S. company, owns the majority
Q13: Preston Company, a U.S. auto part manufacturer,
Q14: When assessing whether you control another entity,
Q16: U.S. GAAP specifies all the following characteristics
Q17: Acme, a U.S. company, has a financial
Q18: Persuasive qualitative evidence that an entity is
Q19: Persuasive qualitative evidence that an entity is
Q20: ABC has a financial relationship with XYZ
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents