Problem 2.9:In a joint operation, each party recognizes:a) Their share of assets, liabilities, revenues andexpensesb) Only their share of profitsc) Only their investment at costd) Nothing until profits are distributed

Explanation of Their share of assets, liabilities, revenues and expenses:In a joint operation, each…

Answered: Problem 2.9: In a joint operation, each…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 12GI

See similar textbooks

Similar questions

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
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
True or False According to PFRS 15, if an entity expects that a portion of giftcertificates sold will not be redeemed, the entity recognizes theexpected breakage amount as revenue in proportion to the pattern of rights exercised by customer
Which of the following is not an advantage of establishing a special purpose entity (SPE)? O a. avoiding consolidation O b. low cost of financing O c. use of governing agreements to restrict the SPE's activities O d. can currently be used as a way to provide off balance sheet financing
Which of the following statements about joint arrangements is/are incorrect: (i) Whenever a joint arrangement is structured through a vehicle that is separate from the parties, the arrangement is classified as a joint venture (ii) Whenever the contractual arrangements give the parties rights to the assets and obligations for the liabilities of the arrangement, the arrangement is classified as a joint operation (iii) Joint operations are reported in the consolidated statement of financial position of the joint operator by recognising the share of assets and liabilities attributable to the joint operator (iv) Joint ventures are reported in the consolidated statement of financial position of the joint venturer using the equity method of accounting a. (i) only b. (ii) only c. (iii) only d. (iv) only e. (i) and (ii)
In a transaction involving the transfer of corporate and partnership interests in which the special valuation rules under IRC Chapter 14 apply, which one of the following statements is CORRECT? A) The interest retained by the transferor must be valued at zero if this retained interest is not a qualified interest. B) The interest given to the transferee/recipient must be valued at zero if the transferee is not given a qualified interest. C) The interest retained by the transferor must be valued at zero if this retained interest is a qualified interest. D) The interest given to the transferee must be valued at zero if the transferee is given a qualified interest.
18) Which one of the following will not be recorded in profit and loss appropriation account? a. Commission to partner b. Interest on capital c. Salary to partner d. Interest paid to bank
Help
Which of the following statements about a business combination is valid? a. The acquirer should recognize the acquiree’s contingent assets if certain conditions are met. b. The acquirer should recognize the acquiree’s contingent liabilities if certain conditions are met. c. The acquirer should recognize the acquiree’s contingent assets regardless of any conditions to be met. d. The acquirer should never recognize the acquiree’s contingent liabilities even if certain conditions are met.
PFRS 3 requires that all business combination be accounted for using a. the pooling interest method b. the acquisition method c. either the pooling of interest or acquisition methods d. neither the pooling of interest nor acquisition methods
A capital deficiency can be eliminated by the following except A.Offsetting against a partner’s loan B.Additional investment C.Selling non cash assets at a gain D.Loss to the other partners
Goodwill is attributed to both the owners of the parent and non-controlling interests (Non-controlling Interest), if: a. In both proportionate share and fair value b. The NCI is measured at fair value c. Neither in proportionate share nor fair value d. The NCI is measured at proportionate share

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS

Problem 2.9: In a joint operation, each party recognizes: a) Their share of assets, liabilities, revenues and expenses b) Only their share of profits c) Only their investment at cost d) Nothing until profits are distributed