• Which of the following is a peculiar characteristic of a joint arrangement? joint arrangement? a. significant influence c. joint controlb. control d. joint venture

• 2. Read Co. and Learn Co. are national distributors of textbooks. Read and Write enters into a contract to acquire a warehouse in a particular region. Each party will use the warehouse to store the warehouse to store its own inventories. The parties agree to share in the costs of acquiring and maintaining the warehouse. The arrangement between Read and Learn is most likely a a. joint operation operation c. joint ventureb. jointly controlled asset d. none of these

• 3. Read Co. and Learn Co. are publishers of textbooks. Read and Learn enters into a contract to put up a bookstore which shall be named Knowledge Bookstore. Knowledge will have its own assets, incur its own liabilities, and earn and incur its own revenues and expenses. Read and Learn will each have a 50% interest in the net assets and profits of Knowledge. The arrangement between Read and Learn is most likely a a. joint operation operation c. joint ventureb. jointly controlled net assets d. none of these

• 6. If an entity's statement of financial position shows an "investment" account for its interest in ajoint arrangement, a user of the entity's financial statement would most like find out in the notes that the nature of the joint arrangement is a(an) a. joint operation c. investment in associateb. joint venture d. either of these