Reference no: EM132756914

Problem 1: Which of the following is a peculiar characteristic of a joint arrangement?

a) control         

b) joint venture

c) significant influence

d) joint control

Problem 2: T Co. and R Co. are joint venturers of M Co., a producer of high tech machinery. T&R each have 50% interest in the net assets of M Co. During the year, T Co., earns revenue of P1,000,000 from its own operations while M Co., reports revenue of P400,000. How much total revenue shall be reported in T Co.'s statement of profit or loss for the year?

a) P1,000,000        c) P1,400,000

b) P1,200,000         d) No answer given