Which of the following statements is false concerning variable interest entities (VIEs)?
A. VIEs may be formed as a source of low-cost financing.
B. Sometimes VIEs do not have independent management.
C. A VIE cannot take the legal form of a partnership or corporation.
D. Most VIEs are established for valid business purposes.
E. VIEs have little need for voting stock.
Answer: C
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Use this information to answer the following question. Northbrook Corporation is preparing a statement of cash flows. The following transactions occurred during the year: 1 . Sold machinery for $9,000 cash. 2 . Purchased a building for $80,000 cash. 3 . Issued $70,000 worth of stock to acquire an airplane. 4 . Converted long-term bonds by issuing $100,000 worth of stock. 5 . Declared and paid a
$10,000 cash dividend. Transaction 1 would be found on the statement of cash flows in the a. cash flows from operating activities section. b. cash flows from financing activities section. c. noncash investing and financing transactions section. d. cash flows from investing activities section.
A 60-day, 10% note for $9,000, dated April 15, is received from a customer on account. The face value of the note is
A) $9,850 B) $7,200 C) $9,900 D) $9,000
Generally, constitutional protections do NOT apply to
a. acts of the federal government. b. acts of state government. c. acts of administrative agencies. d. acts of privately owned businesses.