Theoretical Test - Joint Arrangement Accounting

Pregunta 1 de 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

Selecciona una de las siguientes respuestas posibles:

Joint Arrangement
Joint Operation
Joint Venture
Joint Account

Explicación

Pregunta 2 de 20

1

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

Selecciona una de las siguientes respuestas posibles:

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.

Explicación

Pregunta 3 de 20

1

Joint control exists when there are the following items, except

Selecciona una de las siguientes respuestas posibles:

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.

Explicación

Pregunta 4 de 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:

Selecciona una de las siguientes respuestas posibles:

Partnership
Incorporation
Joint Arrangement
Sales

Explicación

Pregunta 5 de 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:

Selecciona una de las siguientes respuestas posibles:

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

Explicación

Pregunta 6 de 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:

Selecciona una de las siguientes respuestas posibles:

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

Explicación

Pregunta 7 de 20

1

The accounting method for joint venture is:

Selecciona una de las siguientes respuestas posibles:

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

Explicación

Pregunta 8 de 20

1

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

Selecciona una de las siguientes respuestas posibles:

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

Explicación

Pregunta 9 de 20

1

An example of debit to Investment in Joint Venture account.

Selecciona una de las siguientes respuestas posibles:

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

Explicación

Pregunta 10 de 20

1

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

Selecciona una de las siguientes respuestas posibles:

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

Explicación

Pregunta 11 de 20

1

A joint arrangement may be:

Selecciona una de las siguientes respuestas posibles:

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

Explicación

Pregunta 12 de 20

1

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

Selecciona una de las siguientes respuestas posibles:

Joint Venture
Joint Operation
Corporation
Partnership

Explicación

Pregunta 13 de 20

1

A Joint Arrangement that has a separate vehicle is a:

Selecciona una de las siguientes respuestas posibles:

Joint Management
Joint Account
Joint Operation
Joint Venture

Explicación

Pregunta 14 de 20

1

Which of the following statement is false:

Selecciona una de las siguientes respuestas posibles:

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.

Explicación

Pregunta 15 de 20

1

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

Selecciona una de las siguientes respuestas posibles:

A Dividend Income
Expense
Return of Investment
Other Comprehensive Income

Explicación

Pregunta 16 de 20

1

The method of accounting for joint operation

Selecciona una de las siguientes respuestas posibles:

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

Explicación

Pregunta 17 de 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:

Selecciona una de las siguientes respuestas posibles:

Joint Venture
Joint Operation
Joint Account
none of the choices

Explicación

Pregunta 18 de 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:

Selecciona una de las siguientes respuestas posibles:

Joint Venture
Joint Operation
Joint Account
Joint Management

Explicación

Pregunta 19 de 20

1

The accounting for joint operation includes the following, except:

Selecciona una de las siguientes respuestas posibles:

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

Explicación

Pregunta 20 de 20

1

Which of the following statement is false:

Selecciona una de las siguientes respuestas posibles:

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.

	Creado por simon_pisano hace casi 9 años

Multiple choice type for accounting theories and concepts

Theoretical Test - Joint Arrangement Accounting

Pregunta 1 de 20

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 2 de 20

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 3 de 20

Joint control exists when there are the following items, except

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 4 de 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:

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 5 de 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:

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 6 de 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:

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 7 de 20

The accounting method for joint venture is:

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 8 de 20

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 9 de 20

An example of debit to Investment in Joint Venture account.

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 10 de 20

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 11 de 20

A joint arrangement may be:

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 12 de 20

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 13 de 20

A Joint Arrangement that has a separate vehicle is a:

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 14 de 20

Which of the following statement is false:

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 15 de 20

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

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 16 de 20

The method of accounting for joint operation

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 17 de 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:

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 18 de 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:

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 19 de 20

The accounting for joint operation includes the following, except:

Selecciona una de las siguientes respuestas posibles:

Explicación

Pregunta 20 de 20

Which of the following statement is false: