Which of the Following Is Correct About Joint Operations

question 15

Multiple Choice

Which of the following is correct about joint operations?

• A)Joint operation is not a type of joint arrangement.
• B)Joint operation is the same as a joint venture.
• C)Proportionate consolidation is used for a joint operation.
• D)Equity method of accounting is used for a joint operation.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, particularly in terms of liquid assets.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not considered as cash equivalents.

Expected Income

The amount of money an individual or business anticipates receiving over a specific period, based on projections or past performance.

Future Transactions

Financial activities or dealings that are expected to occur in the future.