QUIZ

1. Which of the following is most likely an acceptable measurement for agricultural produce
Initial measurement Subsequent measurement
a. fair value less costs to sell cost
b. fair value less costs to sell lower of cost and NRV
c. fair value lower of cost and FV less costs to sell
d. fair value less costs to sell fair value less costs to sell

2. Biological assets and agricultural produce are recognized when all of the following are present
except
a. control
b. probable future economic benefits
c. probable future event
d. fair value or cost can be measured reliably

3. Which of the following statements is incorrect regarding the accounting for biological assets?
a. Agricultural land used in growing agricultural produce can never qualify for recognition as
biological asset.
b. Biological asset is living animal or plant.
c. Agricultural produce is harvested product from a biological asset before any processing.
d. PAS 41 and the GAM for NGAs have the same accounting treatment for consumable and
bearer plants.

Use the following information for the next two questions:

On January 1, 20x1, the biological assets of Entity A consist of two 1-year old animals with fair value
less costs to sell of ₱1,000 each.

The following transactions occurred during the period:

a. On July 1, 20x1, two 1-year old animals are acquired for ₱1,100 each, equal to the FVLCS on this
date.
b. On October 1, 20x1, twoanimals are born. The FVLCS of a newborn on this date is ₱500.

The FVLCS on December 31, 20x1 are as follows:

Age FVLCS
new born ₱600
3 mos. old ₱800
1 yr. old ₱1,200
1.5 yr. old ₱1,500
2 yrs. old ₱2,000

4. How much is change in FVLCS due to price change?

a. 400
b. 1,200
c. 800
d. 3,600
5. How much is change in FVLCS due to physical change?
a. 1,200
b. 2,000
c. 800
d. 3,600

6. Which of the following is considered a biological asset?

a. Carcass
b. Ham
c. Pig
d. Piggy bank

7. Which of the following is considered an agricultural produce?

a. eggs to be hatched into chicks
b. condensed milk
c. dairy cow
d. felled trees

8. Which of the following is considered an inventory rather than agricultural produce at the point
of harvest?
a. Harvested cotton
b. Harvested cane
c. Tea
d. Picked leaves

9. Which of the following is considered an agricultural activity under PAS 41?

a. fishing in the open seas
b. illegal logging
c. floriculture
d. farming in the computer or cellphone

10. Which of the following is considered a bearer plant?

a. Palm oil
b. Corn oil
c. Baby oil
d. Oil palm
“Again, I tell you that if two of you on earth agree about anything you ask for, it will be done for you by my
Father in heaven. For where two or three come together in my name, there am I with them.”
(Matthew 18:19-20)
- END -