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Opep Corp Received a New Building Project That Had Very Short

question 26

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Opep Corp. received a new building project that had very short turnover and very high resource cost. The company decided to ask Imog Corp., another builder, to aid them in this project, and the two companies together formed a third company by combining their resources. This third company was formed for the duration of the project and received equal credit after completion. In this scenario, Opep Corp. and Imog Corp. are forming a _____.


Definitions:

Net Method

An accounting method where sales and purchases are recorded at their net amounts after deducting any discounts, rather than recording the gross amount and then the discount separately.

Invoice Price

The original price listed by the manufacturer or a supplier on the invoice, before any discounts.

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