Which of the following does not accurately inform about a variable interest entity (VIE)?

Multiple Choice

• A variable interest entity may take many forms including corporations and partnerships.

• In pre-codification literature, a variable interest entity was referred to as a Special Purpose Entity.

• The power to direct the activities of the VIE that most significantly impact the VIEs economic performance is the definition of a controlling financial interest.

• There are 2 criteria for determining if a company has a controlling financial interest in a variable interest entity.

Which of the following transactions would be reported within the financing activities section of the cash flow statement?

Multiple Choice

• The accrual of a cash dividend.

• The cash payment of interest associated with bonds payable.

• The sale of treasury stock for cash.

• An issue of preferred stock in exchange for a parcel of land.

Which of the following does not reflect the accounting and impact on the statement of cash flows for the sale or transfer of accounts receivable?

Multiple Choice

• Receivable sales are not reported in the statement of cash flows as they do not represent collections from the end customers and therefore are not part of operating cash flows.

• Receivable sales create an operating cash inflow on the cash flow statement.

• Receivable sales transfer future operating cash flows into the current period.

• Receivable transfers that are secured borrowings have no effect on operating cash flows.