Three Joint Operators Agree to an Arrangement in Which They

question 25

Multiple Choice

Three joint operators agree to an arrangement in which they have an equal share in a manufacturing joint operation. The work undertaken in setting up the joint operation cost $600 000 and each operator contributed in cash. Each operator will need to recognise which of the following accounting entries?

• A) DR Work in progress in JO $600 000 CR Cash $600 000
• B) DR Inventories in JO $200 000 CR Cash $200 000
• C) DR Cash in JO $600 000 CR Cash $600 000
• D) DR Cash in JO $200 000 CR Cash $200 000

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Definitions:

Wills

Legal documents that specify how a person's assets will be distributed and affairs handled after their death.

Term Life Insurance

A type of life insurance policy that provides coverage at a fixed rate of payments for a limited period of time, often selected to cover the "term" of one's greatest financial responsibilities.

Universal Life Insurance

A type of flexible permanent life insurance offering both a death benefit and a savings component, allowing the policyholder to adjust premiums and benefits.

Variable Life Insurance

A type of life insurance policy that combines life coverage with an investment fund, where the cash value and death benefit can vary based on the performance of investments.