Which of the Following Statements About Variable Interest Entities (VIE)is

question 46

Multiple Choice

Which of the following statements about variable interest entities (VIE) is false?

• A)Under GAAP,a VIE may be a corporation,partnership,limited liability company or trust.
• B)Under GAAP,pension plans are excluded from VIE accounting.
• C)A potential VIE must be a separate entity,not a subset,branch or division of another entity.
• D)VIEs do not require the identification of a primary beneficiary.

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Definitions:

Decrease

A decrease refers to a reduction in size, number, value, or amount of a particular item or entity over time.

Percent Less

A term used to indicate a reduction in amount or rate by a specified percentage.

Increased By

A term describing how an amount is made larger or expanded in size, volume, number, or extent.

Reduction

A decrease in the amount, size, or intensity of something, often referring to prices, costs, or risks.