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Persuasive Qualitative Evidence That an Entity Is Not a Variable

Question 19

Multiple Choice

Persuasive qualitative evidence that an entity is not a variable interest entity, per U.S. GAAP, includes which one of the following?


A) The entity's business is not focused on just a few customers.
B) The entity's shareholders are guaranteed a certain return on their investment.
C) The entity can borrow based on its own creditworthiness.
D) The entity has never issued equity shares with no voting interests.

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