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Accounting

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 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 the SPE 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.:- M995192

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