In Relation to the Supply of a Service to a Joint

question 8

Multiple Choice

In relation to the supply of a service to a joint operation by one of the joint operators, which of the following statements is correct?

• A) A joint operator can recognise 100% of the earned through the supply of services to the joint operation.
• B) A joint operator is entitled to recognise a profit from the supply of services to itself.
• C) A joint operator cannot earn a profit on supplying services to itself.
• D) A joint operator is not able to recognise the service revenue or service cost for the services supplied to the joint operation.

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Definitions:

Declaration

An official statement or announcement, often related to legal or financial matters.

Investing Section

A part of the cash flow statement that reports the purchase and sale of long-term investments and property, plant, and equipment.

Repayments of Bonds

This concerns the act of returning borrowed funds to bond investors at the agreed-upon maturity date, usually including both principal and interest payments.

Statement of Cash Flows

A financial report that shows the cash inflows and outflows for a company over a specific period, indicating how it sources and uses cash.