In a securitization, a special purpose vehicle (SPV) is responsible for the:
a) issuance of the asset-backed securities.
b) collection of payments from the borrowers.
c) Recovery of underlying assets for delinquent loans.
Answer: a) issuance of the asset-backed securities.
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Which of the following equations represent the relationship between the change in cash and cash equivalents (Cash) and the changes in other current assets (OCA), current liabilities (CL), Noncurrent Assets (NCA), noncurrent liabilities (NCL), capital stock (CS) and retained earnings (RE)?
A) ?Cash = ?CL + ?NCL ? .?OCA ?.?NCA + ?CS + ?RE B) ?Cash = ?OCA + ?NCA ?.?CL ?.?NCL + ?CS + ?RE C) ?Cash = ?CL + ?NCL ? .?OCA ?.?NCA - ?CS - ?RE D) ?Cash = ?OCA + ?NCA ?.?CL ?.?NCL - ?CS - ?RE
Revenue is recorded when accounts receivable are collected under the cash basis of accounting
Indicate whether the statement is true or false