Which of the following situations does NOT demonstrate an attempt at financial engineering?
A. creating complex legal arrangements and financial instruments
B. structuring debt financing so that it meets the GAAP definition of equity rather than debt
C. accounting for bona fide business transactions in a transparent manner
D. aggressively interpreting GAAP so that the impact on critical ratios is minimized
Answer:C
Which of the following situations does NOT demonstrate an attempt at financial engineering?
A. creating complex legal arrangements and financial instruments B. structuring debt financing so that it meets the GAAP definition of equity rather than debt C. accounting for bona fide business transactions in a transparent manner D. aggressively interpreting GAAP so that the impact on critical ratios is minimized