Where a Joint Venture Is a Partnership

question 22

Multiple Choice

Where a joint venture is a partnership:

• A) It should be accounted for by the venturer using the equity method.
• B) It should be accounted for by the venturer using partnership accounting separately to the financial accounts of the venturers and any profit on sale of the output from the joint venture reported in the income statement of the individual venturers.
• C) It should be accounted for by the venturer as a partnership and the line items added into the group's financial statements.
• D) It should be accounted for using full consolidation accounting.
• E) None of the given answers.

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Definitions:

Fractions

Mathematical expressions representing the division of one integer by another, distinct from zero.

Lowest Terms

A fraction reduced to the lowest terms where the numerator and denominator are the smallest possible numbers that retain the original value.

Fractions

Numerical quantities that represent a part of a whole, commonly expressed with a numerator and a denominator.

Lowest Terms

The most basic version of a fraction, in which both the top and bottom numbers have been minimized to the lowest possible figures.