Which Statement Is Not Correct About "Joint Arrangements

question 21

Multiple Choice

Which statement is not correct about "joint arrangements"?

• A)Joint arrangements usually have a limited life and a defined set of objectives or activities.
• B)A joint arrangement is the same as a partnership for financial accounting purposes.
• C)Unanimous consent for all decisions is required of all parties.
• D)There is a contractually agreed sharing of control over economic activities.

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Definitions:

Note Payable

A documented commitment to repay a certain sum of money along with interest at an agreed-upon date in the future.

Long-term

Refers to assets, liabilities, or investments expected to be held or relevant for a period exceeding one year.

Current Liabilities

Obligations or debts that a company expects to pay or settle within one year.

Financing Cash Flows

This represents the cash flow movements that are associated with financing activities in a company, including transactions involving debt, equity, and dividends.