The Disadvantage of the One- Line Method Is That

question 5

Multiple Choice

The disadvantage of the one- line method is that:

• A)it overlooks the fact that the joint venture operation involves the direct ownership of assets and the direct incurrence of liabilities by the individual venturers
• B)in the absence of further disclosures,it could mislead financial statement users by conveying a view that the proportions of joint venture assets and liabilities recognised are under the direct and absolute control of the venturer
• C)it provides a more complete picture of the operations,resources and obligations of the entity and more information on the risks faced by the entity
• D)none of the above

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Definitions:

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in complex functions like consciousness, thought, emotion, and memory.

Innate Ability

A natural skill or talent an individual is born with, not acquired through learning.

Sophisticated Thinking

A high level of thought that includes abstract reasoning, problem-solving, and the ability to understand complex ideas and concepts.

Opposable Toes

Toes, particularly the big toe in humans, that can be moved to touch the other toes, enabling grasping motions.