U.S. GAAP specifies all the following characteristics of variable interest entities except:
A) Total equity investment at risk does not allow the entity to finance its activities without subordinated financial support of other entities.
B) Equity holders do not have voting rights.
C) Equity holders hold less than 5% of the entity's voting stock.
D) Equity holders do not have the right to receive the entity's expected residual returns.
Correct Answer:
Verified
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