Which Statement Is Correct About Joint Arrangements

question 107

Multiple Choice

Which statement is correct about joint arrangements?

• A)IFRS distinguishes between joint operations and joint ventures.
• B)IFRS uses the terms joint operations and joint ventures inter-changeably.
• C)IFRS permits either the proportionate consolidation method or equity method.
• D)IFRS permits only the equity method.

---

Definitions:

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholders' equity.

Net Profit Margin

A financial metric that measures the percentage of profit generated from revenue after all expenses have been subtracted.

Gross Margin

The difference between revenue and cost of goods sold, which shows the profitability of a company's core activities.

Return On Total Assets

A financial ratio that measures a company's profitability relative to its total assets.