A Concern Raised by Opponents to the Line-By-Line Method Is

question 57

Multiple Choice

A concern raised by opponents to the line-by-line method is that:

• A) The benefits flowing from assets in a joint venture cannot be seen as belonging to any individual joint venturer.
• B) Since joint ventures may be set up to share output or assets merging the assets, liabilities, income and expenses of this activity with those of a strictly profit-oriented enterprise reduces the usefulness of the information provided.
• C) The method aggregates assets that are controlled by the entity with those that are the subject of joint control.
• D) There is a problem attaching a value to potential income arising out of the shared outputs that are common to many joint ventures. Until an acceptable measurement method can be developed, opponents argue that note disclosures about joint ventures are more appropriate.
• E) None of the given answers.

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Definitions:

Defense Mechanism

Psychological strategies brought into play by individuals to cope with reality and to maintain self-image.

Displacement

A psychological defense mechanism where an individual shifts feelings from an undesirable situation to one that is more acceptable.

Yelled

To have shouted or expressed something loudly, often due to strong emotions.

Displacement

In psychology, it is a defense mechanism where the mind substitutes either a new aim or a new object for goals felt in their original form to be dangerous or unacceptable.