When Eliminating Any Unrealised Profit Arising When a Joint Operator

question 16

Multiple Choice

When eliminating any unrealised profit arising when a joint operator provides services to a joint operation the profit is eliminated against:

• A) retained earnings.
• B) cost of goods sold.
• C) the investment in the joint operation.
• D) work in progress, finished goods and other inventories related accounts.

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Definitions:

Ethical Opinion

An advisory statement issued by a professional organization or governing body that outlines the ethical standards of a particular profession or practice.

American Bar Association (ABA)

The largest voluntary association of lawyers and law students in the United States, which sets academic and ethical standards for the legal profession.

Contingency-Fee Basis

A payment structure where a lawyer receives a percentage of the client's settlement or judgment as a fee, only if the case is won.

Double Billing

The unethical practice of charging more than once for the same service or work, often found in legal and medical billing.