Variable Interest Entities

question 20

Multiple Choice

Variable interest entities:

• A) may be accounted for either using consolidation or fair value.
• B) often do not specify who has the controlling interest.
• C) can be used to shield liabilities from disclosure.
• D) All of the above.

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Definitions:

Learned Response

A behavior that has been acquired or modified as a result of experience or conditioning.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response tendency; in biology, the dying out of a species.

Commission

An instruction, command, or duty given to a person or group of people.

Fixed-ratio Schedule

This is a schedule of reinforcement where a response is rewarded only after a specified number of responses.