Reference no: EM132931213

Problem 1: What do you call a joint arrangement that is structured without a separate vehicle?

Option 1: Joint entity

Option 2: Joint operation

Option 3: Joint venture

Option 4: Joint asset

Problem 2: 2 entities established a joint arrangement in an incorporated entity. The assets and liabilities of the entity will be in the name of the incorporated entity. The activities for the arrangement will be decided by its own board of directors. The rights of the two parties are limited only to the net assets of the incorporated entity. How should the two parties account for their investment?

Option 1: Joint operation

Option 2: Investment in trading securities

Option 3: Financial asset at amortized cost

Option 4: Joint venture

Problem 3: What do you call a joint arrangement that involves the establishment of a corporation in which each party has an equity interest in the net assets of the corporation?

Option 1: Joint entity

Option 2: Joint venture

Option 3: Joint undertaking

Option 4: Joint operation