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:

Formal

Following or according with established form, custom, or rule; characterized by strict or meticulous adherence to established codes or conventions.

Hybrid

Combining two or more different elements, methods, or systems to create a new or dual-functioning entity.

Fact Finding

The process of gathering, analyzing, and reporting on data and facts, often conducted to inform decision-making or resolve disputes.

Substantial Evidence

Refers to evidence that a reasonable mind could accept as adequate to support a conclusion. It is defined as “more than a scintilla but less than preponderance” and consists of “such relevant evidence as a reasonable person would accept as adequate to support a conclusion.”