Activity 9_CFAS

1. Biological assets
a. Are found only in Biotech entities
b. Are living animals or living plants and must disclosed as a separate line item in the statement
of financial position?
c. Must be measured at cost
d. Do not generally have future economic benefit
Answer: B

2. It is management by an entity of the biological transformation and harvest of biological assets

for sale or for conversion into agricultural produce or into additional biological asset.
a. Agricultural activity
b. Biological activity
c. Economic activity
d. Development activity
Answer: A

3. Biological transformation ‘results from asset changes through all of the following, except.
a. Growth
b. Degeneration
c. Procreation
d. Production of agricultural produce
Answer: D

4. Agricultural activity results in which of the following type of asset?

a. Biological asset
b. Agricultural produce
c. Biological asset and agricultural produce
d. Neither biological asset nor agricultural produce
Answer: C

5. Agricultural activity includes all of the following, except

a. Raising livestock
b. Perennial cropping
c. Aquaculture
d. Ocean fishing
Answer: D
6. Which statement is true about biological assets?
a. Biological assets are measured at fair value less cost of disposal
b. When fair value cannot be determined reliably, the biological asset shall be measured at cost
less accumulated depreciation and impairment.
c. There is a presumption that the fair value of biological asset can be measure reliably.
d. All of these statements are true about biological assets.
Answer: D

7. Agricultural produce is
a. The harvested product from biological asset.
b. Measured at the time of harvest at the cost of production.
c. Measured at each reporting period at fair value less cost of disposal.
d. All of the choices are correct regarding agricultural produce.
Answer: A

8. Agricultural produced as it grows on bearer plant is measured at the end of each reporting
period prior to harvest at.
a. Fair value
b. Fair value less cost of disposal
c. Fair value plus cost of disposal
d. Fair value less cost of disposal at the point of harvest
Answer: B

9. Agricultural produce harvested from bearer plant is measured at

a. Fair value
b. Fair value less cost of disposal at the point of harvest
c. Cost less of disposal
d. Fair value plus cost of disposal at the point of harvest
Answer: B

10. A bearer is a living plant that

a. Is used the production or supply of agricultural produce
b. Is used to bear produce for more than one period
c. As a remote likelihood of being sold as agricultural produce, except for incidental scrap sales
d. Must possess all of these characteristics
Answer: D
11. All of the following can be considered bearer plant, except
a. Coconut tree
b. Grape vine
c. Rubber tree
d. Tree in a forest plantation to be harvested and sold as log and lumber
Answer: D

12.A living plant with the dual use is classified as

a. Bearer plant
b. Biological asset
c. Investment property
d. Inventory
Answer: B

13.According to IASB, bearer plants are accounted for as

a. Biological assets with disclosure
b. Biological assets without closure
c. Property, plant and equipment
d. Non-current investment
Answer: C

14. Mature bearer plant is measured using

a. Cost model
b. Revaluation model
c. Either cost model or Revaluation model
d. Either cost model or fair value model
Answer: C

15.According to IASB, bearer animals are accounted for as

a. Biological assets
b. Property, plant and equipment
c. Investment property
d. Intangible asset
Answer: A