CFA CFA Level 2 CFAI TEXTS, VOLUME 2, PAGE 414, QUESTIONS 16 AND 17

CFAI TEXTS, VOLUME 2, PAGE 414, QUESTIONS 16 AND 17

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    • googs1484
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      I’m begging someone to validate for me that these questions and answers are WRONG that CFAI is giving. Selling receivables to a consolidated SPE would not affect leverage or liabilities to total capital. No way.

    • googs1484
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      I got an explanation for these so all set. Apparently we’re supposed to assume if receivables aren’t sold the firm would seek debt financing instead hence increased assets and liabilities. 

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