When a Parent Company Transfers Its Receivables to One of Its

question 53

True/False

When a parent company transfers its receivables to one of its Special Purpose Entities (SPEs), these receivables will always be included in the parent's consolidated financial statements.

---

Definitions:

Algorithm

A set of rules or a step-by-step process designed to perform a specific task or solve a particular problem.

Heuristic

A simple thinking strategy that often allows us to make judgments and solve problems efficiently; usually speedier but also more error-prone than an algorithm.

Tools

Devices or implements used to carry out a function or perform a task, often making jobs easier or possible.

Heuristics

Mental shortcuts or "rules of thumb" that simplify decision making by reducing the amount of information processed.