Which of the Following Statements Regarding Losses Recorded by the Associate

question 46

Multiple Choice

Which of the following statements regarding losses recorded by the associate or joint venture is FALSE?

• A)The entity's share of losses of an associate or joint venture is recognized but only to the point where the carrying amount of the investment in the associate or joint venture is zero.
• B)The share of losses may be offset against other investments the entity has in the associate or joint venture such as long-term receivables.
• C)If, after reporting losses, an associate earns a profit, the entity recognizes a share of profits only after the share of profits exceeds the share of past losses not recognized.
• D)If, after reporting losses, a joint venture earns a profit, the entity does not recognize a share of profits ever.

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Definitions:

Great Awakening

A series of religious revivals in the American colonies during the 18th century, which emphasized individual piety and being born again.

Methodist

A Christian denomination characterized by its emphasis on practical holiness, service, and theological traditions originating from the teachings of John Wesley.

Assembly Party

A political group or gathering organized to debate and make decisions, often within a legislative or parliamentary context.

James Oglethorpe

A British soldier, Member of Parliament, and philanthropist, best known for founding the colony of Georgia in America as a place for debtors and poor individuals.