The Primary Beneficiary of a Variable Interest Enterprise

question 53

Multiple Choice

The primary beneficiary of a variable interest enterprise:

• A) must include the assets, liabilities, and results of the variable interest enterprise in its consolidated financial statements.
• B) can simply record income on a cash basis when dividends are received or income accrued.
• C) only recognizes a gain or loss on the sale of its interest in the variable interest enterprise.
• D) only includes the results of the variable interest enterprise if it has in excess of 50% of the voting share capital of the variable interest enterprise.

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Definitions:

India

A country in South Asia, the seventh-largest by land area, and the second-most populous country globally, known for its diverse culture and history.

Roots

The part of a plant that grows downward into the soil, anchoring the plant and absorbing water and nutrients.

Morphemes

The smallest linguistic units in a language that carry meaning; can be a word or a part of a word, such as a prefix or suffix.

Heated

Refers to a situation or debate characterized by intense emotions or high temperatures.