Which of the Following Statements Is False Concerning Variable Interest

question 60

Multiple Choice

Which of the following statements is false concerning variable interest entities (VIEs) ?

• A) Sometimes VIEs do not have independent management.
• B) Most VIEs are established for valid business purposes.
• C) VIEs may be formed as a source of low-cost financing.
• D) VIEs have little need for voting stock.
• E) A VIE cannot take the legal form of a partnership or corporation.

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Definitions:

Accounts Payable

Liabilities or amounts owed by a company to creditors for goods and services that have been purchased on credit but not yet paid for.

Journal

A chronological record where financial transactions are initially recorded using the double-entry accounting system before being transferred to accounts in the ledger.

Chronological Order

This is the arrangement of events, or information, according to the time sequence in which they occurred or were created.

Account Number Order

The sequence or arrangement of account numbers, often used in organizing financial records or transactions for easy access and reference.