Which of the following statements is correct?
A)a jointly controlled entity controls the assets of the joint venture,incurs liabilities and expenses,and earns income
B)a jointly controlled entity cannot enter into contracts in its own name or raise finance itself to fund the joint venture's activities.
C)a jointly controlled operation controls the assets of the joint venture,incurs liabilities and expenses,and earns income
D)all of the above

Question

Quizplus · Accepted Answer

A jointly controlled entity is a type of joint venture in which the venturers have joint control over the entity and have rights to the assets, incur liabilities, and share in the income and expenses. The jointly controlled entity is a separate legal entity and can enter into contracts and raise finance in its own name. Therefore, statement A is correct. Statement B is incorrect as a jointly controlled entity can raise finance and enter into contracts. Statement C is also incorrect as there is no such term as "jointly controlled operation."

Which of the Following Statements Is Correct