tianxin

Dreary Wrote:
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> I see what you are saying, and that's probably
> what they meant, but if you look at the question
> it says "If SH sells its receivables to the SPE,
> its results will show ... (b) higher cash, (c)
> same A/R. In my opinion, the answer is both.
>
> ... it's really comparing if they sell versus if
> they don't sell! Obviously if they don't sell,
> their cash remains low, and if they sell they get
> more cash... but anyway, who am I to argue with
> CFAI :-(.

I think you are stuck with the first sentence "If SH sells its receivables to the SPE,
> its results will show", go to the next one "its consolidated results will most likely show"

The way I see it is that it is comparing between consolidating and not consolidating. I KNOW that they sold it.