Theoretical Test - Joint Arrangement Accounting

Frage 1 von 20

1

It arises where two or more entities have an arrangement between each other such that these entities have joint control over the arrangement

Wähle eine der folgenden:

Joint Arrangement
Joint Operation
Joint Venture
Joint Account

Erklärung

Frage 2 von 20

1

The characteristics of a joint arrangement includes the following, except:

Wähle eine der folgenden:

The parties are bound by a contractual arrangement
The contractual arrangement gives two or more parties joint control over the arrangement
There is a unanimous consent of the parties over the arrangement
There should be 50% interest over the corporate arrangement.

Erklärung

Frage 3 von 20

1

Joint control exists when there are the following items, except

Wähle eine der folgenden:

There exists a contractually agreed sharing of control
There must be a unanimous consent of the parties
There is no single party that has control over the arrangement
The party that holds the substantial portion over the company must have a sole control over the arrangement.

Erklärung

Frage 4 von 20

1

A Corporation and B Corporation made an arrangement. A has a 50% interest over the entity. B has a share of 50%. The contract requires that 70 percent of the entity's interest must agree before making a decision over a particular activity. The contract is:

Wähle eine der folgenden:

Partnership
Incorporation
Joint Arrangement
Sales

Erklärung

Frage 5 von 20

1

A, B and C made an entity with agreed sharing in the entity's interest: 50%,20% and 30%. They agreed that a company can make a decision if at least 50% of the interest had been exercised. The contract has:

Wähle eine der folgenden:

a joint control
no joint control
joint management
absolute control of party - C

Erklärung

Frage 6 von 20

1

A, B, C and D had decided to make an arrangement. The parties require that there may be unanimous vote for all the activities they are going to take. The contract has:

Wähle eine der folgenden:

Joint Control
Significant Influence
Absolute Control of one party
Financial Interest only but no control

Erklärung

Frage 7 von 20

1

The accounting method for joint venture is:

Wähle eine der folgenden:

Cost Method
Fair Value through profit or loss
Equity Method
Fair Value through Other Comprehensive Income

Erklärung

Frage 8 von 20

1

An example of a credit to Investment in Joint Venture account.

Wähle eine der folgenden:

Initial Investment
Share in Net Income
Dividend Received
Change in accounting estimate

Erklärung

Frage 9 von 20

1

An example of debit to Investment in Joint Venture account.

Wähle eine der folgenden:

Share in Net Loss
Share in Other Comprehensive Loss
Dividend Received
Initial Investment

Erklärung

Frage 10 von 20

1

Recording the share of net income from a joint venture will result to:

Wähle eine der folgenden:

Decrease in Investment in Joint Venture account
Increase in Investment in Joint Venture account
No effect in Investment in Joint Venture account
Decrease in total equity

Erklärung

Frage 11 von 20

1

A joint arrangement may be:

Wähle eine der folgenden:

A Corporation
A Partnership
A Financial Structure
All of the choices are correct

Erklärung

Frage 12 von 20

1

If the joint arrangement has no separate vehicle. The arrangement is a:

Wähle eine der folgenden:

Joint Venture
Joint Operation
Corporation
Partnership

Erklärung

Frage 13 von 20

1

A Joint Arrangement that has a separate vehicle is a:

Wähle eine der folgenden:

Joint Management
Joint Account
Joint Operation
Joint Venture

Erklärung

Frage 14 von 20

1

Which of the following statement is false:

Wähle eine der folgenden:

Under the Equity Method, a share in net income will result to an increase in the Investment account.
Under Equity Method, initial investment to a joint venture will result to an increase in the Investment account.
Under Equity Method, dividend received from a joint venture will result to a decrease in the Investment account.
Under Equity Method, dividend received from a joint venture will result to an increase in the Investment account.

Erklärung

Frage 15 von 20

1

Dividend received from a joint venture shall be treated in the Investor's books as

Wähle eine der folgenden:

A Dividend Income
Expense
Return of Investment
Other Comprehensive Income

Erklärung

Frage 16 von 20

1

The method of accounting for joint operation

Wähle eine der folgenden:

the Equity Method
Fair Value Method
Cost Method
The joint operator shall record his separate assets, liabilities, revenue and expenses in his separate books.

Erklärung

Frage 17 von 20

1

When the contractual arrangement establishes the allocation of revenues and expenses on the basis of the relative performance of each party to the joint arrangement. The arrangement is a:

Wähle eine der folgenden:

Joint Venture
Joint Operation
Joint Account
none of the choices

Erklärung

Frage 18 von 20

1

When the contractual arrangement establishes that the parties to the joint arrangement are liable to the arrangement only to the extent of their respective investments. The arrangement is a:

Wähle eine der folgenden:

Joint Venture
Joint Operation
Joint Account
Joint Management

Erklärung

Frage 19 von 20

1

The accounting for joint operation includes the following, except:

Wähle eine der folgenden:

The joint operator must recognize the assets it controls in the arrangement
The joint operator must recognize the liabilities it incurs in the arrangement
The joint operator must recognize the share of revenue over the operation and the expenses that he incur
The joint operator must only recognize his share in the net assets over the arrangement

Erklärung

Frage 20 von 20

1

Which of the following statement is false:

Wähle eine der folgenden:

In a joint arrangement, the control may be joint but profit sharing is not necessarily equal
A party that participates in, but does not have joint control nor a significant influence, a joint venture shall account for its interest in the arrangement in accordance with PAS 39/PFRS 9 Financial Instruments
A joint venture accounting uses consolidation method in the financial statement preparation
A cash settlement may also be represented by the joint operator's account balance after recording investments, withdrawals and share in joint operation profit.

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Multiple choice type for accounting theories and concepts

Theoretical Test - Joint Arrangement Accounting

Theoretical Test - Joint Arrangement Accounting

Frage 1 von 20

It arises where two or more entities have an arrangement between each other such that these entities have joint control over the arrangement

Wähle eine der folgenden:

Erklärung

Frage 2 von 20

The characteristics of a joint arrangement includes the following, except:

Wähle eine der folgenden:

Erklärung

Frage 3 von 20

Joint control exists when there are the following items, except

Wähle eine der folgenden:

Erklärung

Frage 4 von 20

A Corporation and B Corporation made an arrangement. A has a 50% interest over the entity. B has a share of 50%. The contract requires that 70 percent of the entity's interest must agree before making a decision over a particular activity. The contract is:

Wähle eine der folgenden:

Erklärung

Frage 5 von 20

A, B and C made an entity with agreed sharing in the entity's interest: 50%,20% and 30%. They agreed that a company can make a decision if at least 50% of the interest had been exercised. The contract has:

Wähle eine der folgenden:

Erklärung

Frage 6 von 20

A, B, C and D had decided to make an arrangement. The parties require that there may be unanimous vote for all the activities they are going to take. The contract has:

Wähle eine der folgenden:

Erklärung

Frage 7 von 20

The accounting method for joint venture is:

Wähle eine der folgenden:

Erklärung

Frage 8 von 20

An example of a credit to Investment in Joint Venture account.

Wähle eine der folgenden:

Erklärung

Frage 9 von 20

An example of debit to Investment in Joint Venture account.

Wähle eine der folgenden:

Erklärung

Frage 10 von 20

Recording the share of net income from a joint venture will result to:

Wähle eine der folgenden:

Erklärung

Frage 11 von 20

A joint arrangement may be:

Wähle eine der folgenden:

Erklärung

Frage 12 von 20

If the joint arrangement has no separate vehicle. The arrangement is a:

Wähle eine der folgenden:

Erklärung

Frage 13 von 20

A Joint Arrangement that has a separate vehicle is a:

Wähle eine der folgenden:

Erklärung

Frage 14 von 20

Which of the following statement is false:

Wähle eine der folgenden:

Erklärung

Frage 15 von 20

Dividend received from a joint venture shall be treated in the Investor's books as

Wähle eine der folgenden:

Erklärung

Frage 16 von 20

The method of accounting for joint operation

Wähle eine der folgenden:

Erklärung

Frage 17 von 20

When the contractual arrangement establishes the allocation of revenues and expenses on the basis of the relative performance of each party to the joint arrangement. The arrangement is a:

Wähle eine der folgenden:

Erklärung

Frage 18 von 20

When the contractual arrangement establishes that the parties to the joint arrangement are liable to the arrangement only to the extent of their respective investments. The arrangement is a:

Wähle eine der folgenden:

Erklärung

Frage 19 von 20

The accounting for joint operation includes the following, except:

Wähle eine der folgenden:

Erklärung

Frage 20 von 20