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AVPR Company sets up a qualifying SPE to sell their accounts receivable (A/R) to the SPE. The SPE meets the unconsolidated requirement under GAAP. The most likely outcome of using the SPE by AVPR will be to:

A) improve operating performance ratios of AVPR.

B) have AVPR recognize gains on the sale of their A/R to the SPE.

C) have AVPR issue debentures.

D) be a greater cost of financing to AVPR than borrowing funds from the credit markets.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9413667

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