Under which of the following scenarios would an entity not be classified as a variable interest entity?
a. The equity investing firms do not have the obligation to absorb the expected losses of the variable interest entity if they occur.
b. The investing firms do not have the right to receive the expected residual returns of the variable interest entity if they occur.
c. The total equity investment at risk is sufficient to permit the variable interest entity to finance its activities without additional subordinated financial support from other parties.
d. The equity investing firms do not have the direct or indirect ability to make decisions about the variable interest entity's activities through voting rights or similar rights.
C
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Which intangible assets are amortized? Limited-Life Indefinite-Life
a. Yes Yes b. Yes No c. No Yes d. No No
Which of the following is NOT a reason that nonprofits traditionally have lower salaries?
a. The culture of many nonprofits is one of sacrifice b. donors expect revenues to go for services, not salaries c. All nonprofits have small budgets d. Nonprofit work is sometimes viewed as "women's work" and is historically underpaid e. Scandals about extravagant salaries or outrageous perquisites at organizations such as the United Way or the Smithsonian Institution have put pressure on nonprofits to keep executive salaries low.