Which of the following is not an advantage of establishing a special purpose entity (SPE)? O a. avoiding consolidation O b. low cost of financing O c. use of governing agreements to restrict the SPE's activities O d. can currently be used as a way to provide off balance sheet financing

Q: Explain the differences between upstream and downstream intra-entity transfers, as well as how each…

A: Intra-entity transfer refers to transfer of goods or products among the entities. More often, such…

Q: A challenge facing U. S. companies adopting IFRS is ______________________________. a.certain areas…

A: Some companies earlier following US GAAP have adopted IFRS for accounting and reporting purposes.

Q: State a feature that distingues between a Non-trading Organization from a commercial organization.

A: Non-Trading OrganizationA business concern is an organization involved in activities of buying or…

Q: Explain the indirect ownership interests and who has the indirect interests? Describe the situation…

A: An ownership interest in an entity that owns an ownership interest in another entity. This is…

Q: Short-term debt should be excluded in the estimation of WACC if it is a permanent source of…

A: B.'False' is an incorrect answer as WACC full form is the weighted average cost of capital and if it…

Q: one of the following is not a primary disadvantage of leasing from the lessee perspective is the:

A: Lease can be defined as the contractual arrangement calling for the lessee to pay the lessor for the…

Q: S1: Joint arrangements require investors to have equal interests in the joint arrangement. S2: Joint…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Question One a) Explain the role of the main counterparties (sponsors) to a concession agreement…

A: In a concession agreement under a Special Purpose Vehicle (SPV), sponsors are pivotal counterparties…

Q: Statement 1: It is not always necessary to identify both fair value less cost to sell and value in…

A: Impairment loss: Impairment is the result of a decrease in the fair market value of an asset than…

Q: How does the company can benefit indirectly by leasing assets rather than buying?

A: Company can take benefit of leasing assets rather than buying assets due to many reasons: Leasing…

Q: Which of the following is a distinguishing characteristic of a nonbusiness organization?   Select…

A: The Non business Organizations are the organizations that are formed and operated for the benefits…

Q: Consolidated financial statements are required in which ofthe following situations?a. Only when a…

A: Consolidated financial statements are required only when a parent company can exercise control over…

Q: TRUE OR FLASE? An entity must make the current and noncurrent presentation of assets and…

A: Assets are the resources owned by an entity either for sale (such as inventory) or for the future…

Q: What informal remedies are available to firmsin financial distress? In answering this…

A: Following are the remedies: Informal reorganization Informal liquidation

Q: Uncertainty is a significant problem in Financial Reporting but the current version of IAS 37…

A: IASs provides guidance to deal with particular event or situation. Different IASs give direction on…

Q: Explain the role of the main counterparties (sponsors) to a concession agreement under a Special…

A: The main counterparties or sponsors in a concession agreement under a Special Purpose Vehicle (SPV)…

Q: International accounting standards differ from U.S. Generally Accepted Accounting Principles in that…

A: International accounting standards differ from U.S. Generally Accepted Accounting Principles in that…

Q: Ace Supply Inc. just began business and made the following four inventory purchases in June: June 1…

A: Periodic inventory system means where day to day in or out of goods is not recorded and value of…

Q: which of the following is correct regarding the sale or exchange of virtual currency: A. no gain or…

A: A financial asset is also subject to the taxation even nowadays trending of the asset which is…

Q: Asset sales are common in: banking. services. manufacturing. None of these options are correct.

A: Asset sales-Such a sale occurs when a bank or other type of business firm sells its receivables to…

Q: Significant influence is Group of answer choices Deemed to exist when the investor is exposed, or…

A: Significant influence means if the investor holds at least 20% of voting power of the investee, then…

Q: Which of the following is NOT a required disclosure for any entity that holds an interest in a VIE?…

A: The Financial Accounting Standards Board (FASB) has provided guidance for disclosure requirements…

Q: Which of the following is not an issue that must be considered in determining transaction price?

A: The transaction price is the amount of money a seller anticipates receiving in exchange for…

Q: Which of the following is NOT one of the benefits of leasing an asset from another company: -

A: The leasing is one of the method through which any asset is received by a person or a company…

Q: Which of the following is NOT an indicator used in determining the functional currency? • a.…

A: A practical foreign money is the primary foreign money that a agency conducts its business. As…

Q: One of these components is not included in the current asset of an organisation. O A. Short term…

A: Current assets include those assets that a company can convert into cash within a year. Current…

Q: Which of the following accounting treatments for costs related to business combination is incorrect?…

A: The cost related to business corporation, also known as pre incorporation expenditure, are treated…

Q: Find a recent merger transaction that failed due to regulatory concerns over market share…

A: Many a times regulators block a M&A (mergers and acquisitions) deal on the basis that it will…

Q: How would the transactions be reconciled if the bad debt allowance is changed to a write-off but the…

A: Introduction: This question stated that the company made the provision or provided for allowance for…

Q: The UCC does not cover:.   a. investment securities.     b. sales of copyrights.     c. sales of…

A: UCC stands for Uniform commercial code refers to the rules that are formed for commercial and…

Q: D costs. b. Under IFRS, the product development portion of R&D is capitalized. c. U.S. standard…

A: R&D costs refer to the research and development costs refer expenses involves while a company…

Q: Explain the role of the main counterparties (sponsors) to a concession agreement under a Special…

A: The main counterparties or sponsors in a concession agreement under a Special Purpose Vehicle (SPV)…

Q: Consolidated financial statements are required by GAAP in certain circumstances. This information…

A: Consolidated financial statements are statements prepared by parent company . Parent company is a…

Q: practice, which one of the following factors plays the most important role in the distribution of…

A: When company goes for liquidation than company distribute the funds available for distribution among…