Mountain Province Diamonds and De Beers Partnered to Open Gahcho

question 32

Multiple Choice

Mountain Province Diamonds and De Beers partnered to open Gahcho Kué,a diamond mine in the Northwest Territories,in late 2016. What does the two companies working together to open the mine exemplify?

• A)exporting  
• B)licensing  
• C)a joint venture  
• D)a cooperative contract

Identify and categorize investments as held-to-maturity, trading, or available-for-sale securities.

Comprehend the accounting treatment and valuation of trading and available-for-sale securities.

Understand the equity method for accounting investments of 20-50% in another company's stock.

Differentiate between the fair value method and equity method of accounting for investments.

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting its liabilities, representing the ownership's claim on the assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or a business cycle, whichever is longer.

Long-Term Liabilities

Obligations or debts a company is responsible for paying beyond one year from the date of the balance sheet.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business, whichever is longer.