This document contains two quizzes testing knowledge of key concepts regarding joint arrangements based on Philippine Financial Reporting Standards (PFRS) 11. The questions cover topics such as types of joint arrangements, accounting for transactions in a joint operation, distributing profits and losses between joint operators, and settling cash balances between operators. The document emphasizes that joint arrangements require joint control by all parties and involve sharing of assets, liabilities, revenues and expenses.
This document contains two quizzes testing knowledge of key concepts regarding joint arrangements based on Philippine Financial Reporting Standards (PFRS) 11. The questions cover topics such as types of joint arrangements, accounting for transactions in a joint operation, distributing profits and losses between joint operators, and settling cash balances between operators. The document emphasizes that joint arrangements require joint control by all parties and involve sharing of assets, liabilities, revenues and expenses.
This document contains two quizzes testing knowledge of key concepts regarding joint arrangements based on Philippine Financial Reporting Standards (PFRS) 11. The questions cover topics such as types of joint arrangements, accounting for transactions in a joint operation, distributing profits and losses between joint operators, and settling cash balances between operators. The document emphasizes that joint arrangements require joint control by all parties and involve sharing of assets, liabilities, revenues and expenses.
This document contains two quizzes testing knowledge of key concepts regarding joint arrangements based on Philippine Financial Reporting Standards (PFRS) 11. The questions cover topics such as types of joint arrangements, accounting for transactions in a joint operation, distributing profits and losses between joint operators, and settling cash balances between operators. The document emphasizes that joint arrangements require joint control by all parties and involve sharing of assets, liabilities, revenues and expenses.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1/ 5
Page | 1
Chapter 6 Joint Arrangements
QUIZ 1:
1. An arrangement of which two or more parties have joint control.
a. joint operation c. joint arrangement b. joint venture d. elbow joint
2. The contractually agreed sharing of control of an arrangement, which exists only
when decisions about the relevant activities require the unanimous consent of the parties sharing control. a. significant influence c. control b. joint control d. contractual control
3. A joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. a. joint operation c. joint arrangement b. joint venture d. elbow joint
4. A joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. a. joint operation c. joint arrangement b. joint venture d. elbow joint
5. A party to a joint operation that has joint control of that joint operation. a. joint operationist c. joint arranger b. joint venturer d. joint operator
6. A party to a joint venture that has joint control of that joint venture. a. joint venturist c. joint arrangementor b. joint operationer d. joint venturer
7. According to PFRS 11, it is an entity that participates in a joint arrangement,
regardless of whether that entity has joint control of the arrangement. a. joint arranger c. minority interest b. party to a joint arrangement d. participating cat
8. According to PFRS 11, it is a separately identifiable financial structure, including
separate legal entities or entities recognized by statute, regardless of whether those entities have a legal personality. a. separate vehicle c. special purpose vehicle b. special purpose entity d. public utility vehicle
9. In a joint arrangement, which of the following establishes joint control by the parties? Page | 2
a. mutual sharing of control c. contractual arrangement
b. ownership interest of more than 20% d. stock certificate
10. A joint arrangement in which the assets and liabilities relating to the arrangement are held in a separate vehicle. a. joint operation c. joint arrangement b. joint venture d. can be either a or b
“Be joyful in hope, patient in affliction, faithful in prayer.” (Romans 12:12)
- END - Page | 3
QUIZ 2:
Use the following information for the next two questions:
The following are the transactions of a joint operation formed by A, B and C during a year: ● A contributed cash of ₱400 and merchandise costing ₱800. ● B contributed merchandise costing ₱1,600. Freight-in paid by B is ₱80. ● C made purchases amounting to ₱400 using the cash contributed by A. ● C paid expenses of ₱800 using its own cash. ● C made total sales of ₱3,200. All the merchandise was sold except one-half of those contributed by B. ● C is appointed as the manager of the joint operation. As compensation, C is entitled to a ₱120 salary plus bonus of 25% on profit after salary and bonus. ● Interest of 10% per annum is allowed to A and B’s capital contributions. ● C is charged for the cost of any unsold inventory. Profit or loss after necessary adjustments shall be divided equally.
1. How much is the profit or loss after salaries but before bonus of the joint operation? a. 192 b. 240 c. 360 d. 420
2. On the cash settlement between the joint operators,
a. A pays ₱1,288 c. C receives ₱96 b. B pays ₱1,816 d. All of these
Use the following information for the next two questions:
A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 960 720 Expenses paid 800 Other income 40
The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally.
3. How much is the profit (loss) of the joint operation?
a. 200,000 b. (200,000) c. 180,000 d. (180,000)
4. On the cash settlement between the joint operators,
a. A pays B ₱368 c. A pays B ₱428 b. B pays A ₱368 d. B pays A ₱428
Use the following information for the next two questions:
Page | 4
A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 480 240 Expenses paid 800 Other income 40
The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally.
5. How much is the profit (loss) of the joint operation?
a. 760 b. (760) c. 840 d. (840)
6. On the cash settlement between the joint operators,
a. A pays B ₱368 c. A pays B ₱428 b. B pays A ₱368 d. B pays A ₱428
7. A, B, and C formed a joint operation which was completed during the year. A is the appointed manager who will be entitled to a 10% bonus of profit before bonus. Profit or loss after bonus to A is divided equally among the joint operators. The accounts of B and C show the following balances:
Books of B Books of C Account with A 16 Cr. 16 Cr. Account with B 48 Cr. Account with C 56 Dr.
Unsold merchandise was charged to A at a cost of ₱88. On the cash settlement
between the joint operators, a. A receives ₱72; C pays ₱32 c. B receives ₱72; C pays ₱32 b. B pays ₱72; A pays ₱40 d. None of these
8. A, B, and C formed a joint operation which was completed during the year. The accounts of the joint operators show the following balances:
Books of A Books of B Books of C
Account with A - 10 Dr. 10 Dr. Account with B 16 Dr. - 16 Dr. Account with C 26 Cr. 26 Cr.
On the cash settlement between the joint operators,
a. A receives ₱26; C pays ₱16 c. C receives ₱16; A pays ₱10 b. B pays ₱16; A pays ₱10 d. None of these Page | 5
9. A, B, and C formed a joint operation. Profit or loss shall be divided equally. The following were taken from the joint operation’s books:
Credi Debit t JO – Cash 80 Joint operation 20 B, Capital 60 C, Capital 40
A’s share in the joint operation’s profit is ₱16. A agreed to be charged for the unsold merchandise as of year-end. How much is the cost of unsold merchandise charged to A? a. 56 b. 62 c. 68 d. 72
10. A, B, and C formed a joint operation. The following were taken from the joint operation’s books:
Debit Credit JO – Cash 80 B, Capital 60 C, Capital 88
The cost of unsold inventory is ₱72. The joint operation’s profit is ₱44. How much is the balance of the joint operation account before distribution of profit? a. 28 b. 116 c. 56 d. 0
“Repay no evil for evil. Have regard for good things in the sight of all men. If it is possible, as much as depends on you, live peaceably with all men. Beloved do not avenge yourselves, but rather give place to wrath; for it is written, “Vengeance is Mine, I will repay,” says the Lord. Therefore, “If your enemy hungers, feed him; if he thirsts, give him a drink; for in doing so you will heap coals of fire on his head.” Do not be overcome by evil, but overcome evil with good.” – (Romans 12:17- 21) -END -
