Three Joint Operators Are Involved in a Joint Operation That

question 9

Multiple Choice

Three joint operators are involved in a joint operation that manufactures ships chandlery. At the beginning of the year the joint operation held €50 000 in cash. During the year the joint operation incurred the following expenses: Wages paid €20 000, Overheads accrued €10 000. Additionally creditors amounting to €40 000 were paid and the joint operators contributed €15 000 cash each to the joint operation. The balance of cash held by the joint operation at the end of the year is:

• A) € 5000;
• B) €25 000;
• C) €35 000;
• D) €75 000.

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Definitions:

Breach

The violation or infringement of a law, agreement, or code of conduct.

UCC

Stands for Uniform Commercial Code, a set of laws that govern commercial transactions in the United States.

Resale Profits

The earnings obtained from selling an asset or product for a price higher than the purchase cost.

Breach

The failure to fulfill the terms of a contract, agreement, or duty, which can lead to legal action for enforcement or damages.