With Regard to a Variable Interest Entity (VIE),Ann Company May

question 49

Multiple Choice

With regard to a variable interest entity (VIE) ,Ann Company may meet the following two conditions: Condition I
Ann Company has the power to direct VIE activities that significantly impact VIE's economic performance.
Condition II
Ann Company has an obligation to absorb losses and/or a right to receive significant benefits from the VIE.
Ann Company must consolidate a VIE if

• A)Condition I is met only.
• B)Condition II is met only.
• C)either Condition I or Condition II is met.
• D)both Condition I and Condition II are met.

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Definitions:

Parsimonious

A characteristic of an explanation or theory that requires the fewest assumptions, variables, or changes to be effective or accurate.

Replicable

Capable of being repeated or duplicated under the same conditions, allowing for the verification of results.

Statistically Significant

A determination that a result from data analysis is not likely to have occurred by chance alone, indicating a true effect or difference.

Mathematical Calculations

The process of performing operations on numbers or symbols according to systematic rules to arrive at a result or solution.