Three Joint Operators Are Involved in a Joint Operation That

question 1

Multiple Choice

Three joint operators are involved in a joint operation that manufactures fishing boats. At the beginning of the year the joint operation held $45 000 in cash. During the year the joint operation incurred the following expenses: Wages paid $60 000, Overheads accrued $20 000. Additionally, creditors amounting to $45 000 were paid and the joint operators contributed $27 500 cash each to the joint operation. The balance of cash held by the joint operation at the end of the year is:

• A) $2 500
• B) $42 500
• C) $25 000
• D) $22 500

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

U.S. Dollar

The official currency of the United States, widely used as a benchmark and reserve currency globally.

Federal Deficit

The amount by which a government's expenditures exceed its tax revenues over a specified fiscal period, leading to borrowing or the creation of new funds.

Creditor Nation

A country that has invested more in other countries than others have invested in it, leading to a net positive investment position.