Which Types of Inventory Transactions Are Not Likely to Create

question 22

Multiple Choice

Which types of inventory transactions are not likely to create variable interest entities that would require consolidation?

• A) Land purchase contracts.
• B) Joint ventures.
• C) Percentage of completion contracts.
• D) Options for future land purchases.

---

Definitions:

Nondelegable Duty Of Care

A legal obligation that cannot be transferred to another party and requires a person or entity to exercise a certain standard of care.

Independent Contractor

An individual or entity contracted to perform work for or provide services to another entity as a non-employee.

Bus Driver

A person employed to drive a bus, transporting passengers from one place to another.

Liability

A legal obligation or responsibility for any debts or damages resulting from one's actions or decisions.