Under GAAP,the ________ will include the variable interest entity in consolidated financial statements.

Question

Quizplus · Accepted Answer

According to GAAP, the primary beneficiary is responsible for consolidating the financial statements of a variable interest entity. Therefore, the correct answer is D, "primary beneficiary." A is incorrect because special purpose entities may or may not be variable interest entities, and B and C are incorrect choices because they are not relevant to determining whether a variable interest entity should be consolidated.

Under GAAP,the ________ Will Include the Variable Interest Entity in Consolidated