Which of the Following Statements About Special Purpose Entities (SPEs)

question 14

Multiple Choice

Which of the following statements about Special Purpose Entities (SPEs) is not true?

• A)SPEs cannot take on various legal forms.
• B)It can be difficult to determine who actually controls an SPE.
• C)Management can structure a transaction using an SPE in such a manner that the accounting treatment fails to reflect the economic substance of the transaction.
• D)SPEs have been used to mislead investors.

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Definitions:

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