In relation to the supply of a service to a joint operation by one of the joint operators,which of the following statements is correct?
A)A joint operator can recognise 100% of the earned through the supply of services to the joint operation.
B)A joint operator is entitled to recognise a profit from the supply of services to itself.
C)A joint operator cannot earn a profit on supplying services to itself.
D)It is uncommon for a joint operator to act in a management position for the joint operation.

Question

Quizplus · Accepted Answer

A joint operator cannot earn a profit on supplying services to itself because the transaction is considered internal, and profits are only recognized when transactions occur with external parties.

In Relation to the Supply of a Service to a Joint