Kings Has a 40% Joint Operation Interest in Fisher

question 13

Multiple Choice

Kings has a 40% joint operation interest in Fisher. Based on the following information, what amount will be presented for "revenues" on Kings' proportionately consolidated income statement?

• A)$1,000
• B)$1,800
• C)$2,000
• D)$3,000

---

Definitions:

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to reflect cash transactions.

Comparative Balance Sheets

Financial statements that present the assets, liabilities, and shareholders' equity of a company at different points in time for comparison.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.

Equipment

Assets used in the operations of a business that have a longer-term use, such as machinery, office furniture, and computers, which are subject to depreciation over their useful lives.