Find out the problem Problem 2.5:In a joint operation, each party recognizes:a) Only their share of profitsb) Their share of assets, liabilities, revenues andexpensesc) Only their investment at costd) Nothing until profits are distributed

Concept of Joint OperationA joint operation refers to a business activity undertaken by two or more…

Answered: Problem 2.5: In a joint operation, each…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 5DQ

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(CO 3) Which of the following statements is true concerning an intra-entity transfer of a depreciable asset? Group of answer choices Net income attributable to the non-controlling interest is never affected by a gain on the transfer. Net income attributable to the non-controlling interest is always affected by a gain on the transfer. Net income attributable to the non-controlling interest is affected by a downstream gain only Net income attributable to the non-controlling interest is affected only when the transfer is upstream. Net income attributable to the non-controlling interest is increased by an upstream gain in the year of transfer.
Question 3. Classify each of the following accounts as (a) asset, (b) liability, or (c) equity. a.→Defined benefit obligation b.→Plan asset c.→Right-of-use asset d.→Contract asset e.→ Unearned revenue f.→ Deferred tax asset g.→Accumulated other comprehensive losse
In a business combination, an acquirer's interest in the fair value of the net assets acquired exceeds the consideration transferred in the combination. Under PFRS 3 Business Combinations, the acquirer should A. recognize the excess immediately in profit or los B. recognize the excess immediately in other comprehensive income C. reassess the recognition and measurement of the net assets acquired and the consideration transferred, then recognize any excess immediately in other comprehensive income D. reassess the recognition and measurement of the net assets acquired and the consideration transferred, then recognize any excess immediately in profit or loss
Unconditional transfers of cash or other resources to an entity in a voluntary, nonreciprocal transaction should be recognized as Select one: a.non-operating gains. b. revenue. c.other comprehensive income. d. liabilities.
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2 points mcq general accounting
Company A exchanges equipment with Company B, resulting in a gain for company A. The transaction has commercial substance. Which of the following statements is TRUE regarding this transaction as it related to company A? The entire amount of the gain would be recognized Only a part of the gain would be recognized None of the gain would be recongnized Because the transaction has commercial substance. Company A is in the same economic position as it was before the exchange took place.
21. The purpose of preparation of Profit and loss appropriation account is: a. To know the balance of goodwill of each partner b. To know the share of profit or loss of each partner c. To know the balance of capital of each partner d. To know the balance of drawings of each partner
h3
Which of the following items shall be cancelled on consolidation? a. Receivables related to intra-group sales b. Payables related to intra-group purchases c. Unrealised profit on intra-group transactions d. Loans related to intra-group lending e. All of the above
S1: The acquisition-related costs in a business combination to be expensedimmediately include cost of issuing debt securities. S2: In a business combination any “gain on bargain purchase” shall be recognized in other comprehensive income. A. Only S1 is correct.B. Only S2 is correct.C. Both statements are incorrect.D. Both statements are correct.
3. Under the equity method, which of the following decreases the carrying amount of an investment in associate or joint venture? a. share in the profit of the investee b. share in the other comprehensive income of the investee C. share in the dividends declared by the investee d. a decline in the fair value of the investment

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Problem 2.5: In a joint operation, each party recognizes: a) Only their share of profits b) Their share of assets, liabilities, revenues and expenses c) Only their investment at cost d) Nothing until profits are distributed