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What Is the Original Motivation by FASB on SPEs

Question 65

Multiple Choice

What is the original motivation by FASB on SPEs?


A) To establish a mechanism to encourage companies to invest in needed assets while keeping related debt of its books.
B) To keep the large amount of debt off the books.
C) To sell non-producing assets to the SPE.
D) To select which assets to sell to the SPEs affecting the gain.

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