Which of the Following Is Not an Indicator That Requires

question 68

Multiple Choice

Which of the following is not an indicator that requires a sponsoring firm to consolidate a variable interest entity (VIE) with its own financial statements?

• A) The sponsoring firm has the obligation to absorb potentially significant losses of the VIE.
• B) The sponsoring firm receives risks and rewards of the VIE in proportion to equity ownership.
• C) The sponsoring firm has the right to receive potentially significant benefits of the VIE.
• D) The sponsoring firm has power through voting rights to direct the entity's activities that significantly impact economic performance.
• E) The sponsoring firm is a primary beneficiary of the VIE.

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Definitions:

Clairvoyants

are individuals who claim to have the ability to gain information about an object, person, location, or physical event through extrasensory perception.

Telepaths

Individuals who are believed or claimed to be able to communicate with others through telepathy, the direct transmission of thought from one mind to another.

Research Psychologists

Professionals who study cognitive, emotional, and social processes by observing, interpreting, and recording how individuals relate to one another and their environments.

ESP

Extra-sensory perception, the claimed ability to obtain information without the use of known sensory mechanisms.