UNIVERSITY OF PANGASINAN
GEN009 – INTERMEDIATE ACCOUNTING
P2-QUIZ 1
NAME: SCORE:
Year & Section: DATE:
Write your final answer before the number. Use CAPITAL letters only. Erasures, changing of final answer,
and the like will be considered wrong.
_____1. Which of the following is not dealt with by PAS 41?
a. The accounting for biological assets.
b. The initial measurement of agricultural produce harvested from the entity’s biological
assets.
c. The processing of agricultural produce after harvest.
d. The accounting treatment of government grants received in respect of biological assets.
_____2. Where there is a long aging or maturation process after harvest, the accounting for such
products should be dealt with by
a. PAS 41. c. PAS 16, Property, Plant, and
b. PAS 2, Inventories. Equipment.
d. PAS 40, Investment Property.
_____3. Generally speaking, biological assets relating to agricultural activity should be measured
using
a. Historical cost. c. A fair value approach.
b. Historical cost less depreciation d. Net realizable value.
less impairment.
_____4. Entity A had a plantation forest that is likely to be harvested and sold in 30 years. The
income should be accounted for in the following way
a. No income should be reported until first harvest and sale in 30 years.
b. Income should be measured annually and reported using a fair value
approach that recognizes and measures biological growth.
c. The eventual sale proceeds should be estimated and matched to the
profit and loss account over the 30-year period.
d. The plantation forest should be valued every 5 years and the
increase in value should be shown in the statement of recognized
gains and losses.
_____5. Statement I: In all cases, an entity measures agricultural produce
at the point of harvest at its fair value less costs to sell.
Statement II: A biological asset is a living animal or plant.
a. True; c. False;
True True
b. True; d. False;
False False
_____6. Where the fair value of the biological asset cannot be determined reliably on initial
recognition, the biological asset should be measured at
a. Cost.
b. Cost less accumulated depreciation.
c. Cost less accumulated depreciation and accumulated impairment losses.
d. Net realizable value.
_____7. Which of the following costs are not included in costs to sell?
a. Commissions to brokers and d. Transport and other costs
dealers. necessary to get the assets to a
b. Levies by regulatory agencies. market.
c. Transfer taxes and duties.
_____8. Biological assets are
a. Living animals only
b. Living plants only
c. Both living animals and living
plants
d. Neither living animals nor living
plants
UNIVERSITY OF PANGASINAN
GEN009 – INTERMEDIATE ACCOUNTING
P2-QUIZ 1
NAME: SCORE:
Year & Section: DATE:
_____9. It is the 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 c. Economic activity
b. Biological activity d. Development activity
_____10. Biological assets are measured at
a. Cost c. Net realizable value
b. Lower of cost or net realizable d. Fair value less costs to sell
value
_____11. Agricultural produce is measured at
a. Fair value c. Net realizable value
b. Fair value less cost to sell at the d. Net realizable value less normal
point of harvest profit margin
_____12. It is the harvested product of the entity’s biological assets
a. A u
g r
r e
i
c b. Harvest
u c. Agricultural produce
l d. Product
t
_____13. Agricultural activity includes all of the following, except
a. Raising livestock c. Perennial cropping
b. Aquaculture d. Ocean fishing
_____14. Biological transformation results from asset changes through all of the following, except
a. Growth
b. Degeneration
c. Procreation
d. Production of agricultural produce
_____15. Statement I: Entities often enter into contracts to sell their biological assets or agricultural
produce at a future date. Contract prices may be used in measuring fair value.
Statement II: A gain or loss arising on initial recognition of a biological asset at fair value less costs
to sell and from a change in fair value less costs to sell of a biological asset shall be included in the
other comprehensive income for the period in which it arises.
a. True; True
b. True; False
c. False; True
d. False; False
_____16. The following statements relate to agricultural produce. Which statement is correct?
I. In all cases, an entity shall measure agricultural produce at the point of harvest at fair value less
cost to sell.
II. PAS 41 reflects the view that the fair value of agricultural produce at the point of harvest can
always be measured reliably
a. I only
b. Both I and II
c. II only
d. Neither I nor II
_____17. When the fair value of the biological asset cannot be determined reliably, the biological
asset shall be measured at
a. Cost
b. Net realizable value
c. Cost less accumulated depreciation
d. Cost less accumulated depreciation and accumulated impairment loss.
_____18. A gain or loss arising on the initial recognition of a biological asset and from a change in the
fair value less costs to sell of a biological asset shall be included in
a. The profit or loss for the period
b. A separate revaluation reserve
c. Other comprehensive income
d. A capital reserve within equity
_____19. Which of the following information shall be disclosed under PAS 41?
a. Separate disclosure of the gain or loss relating to biological assets and
agricultural produce.
b. The aggregate gain or loss arising on the initial recognition of biological
assets and agricultural produce and from the change in fair value less
costs to sell of biological assets.
c. The total gain or loss from biological assets, agricultural produce,
and from changes in fair value less costs to sell of biological
assets.
d. There is no requirement in the standard to disclose separately any gains or losses.
_____20. The measurement of biological assets involved in agricultural activities should be based on
a. Net realizable value
b. Historical cost
c. Fair value approach
d. Replacement cost
_____21. Land that is related to agricultural activity is valued
a. At fair value.
b. In accordance with PAS 16, Property, Plant and Equipment, or PAS 40, Investment Property.
c. At fair value in combination with the biological asset that is being grown on the land.
d. At the resale value separate from the biological asset that is being grown on the land.
_____22. Where there is a production cycle of more than one year for a biological asset, PAS 41
encourages separate disclosure of the
a. Physical change only
b. Total change in value
c. Price change only
d. Physical change and price change
_____23. All of the following would be classified as biological asset, except
a. Dairy Cattle c. Egg
b. Chicken d. Tree
_____24. This is the detachment of produce from a biological asset.
a. Agricultural produce
b. Harvest
c. Cessation
d. Bearing
_____25. This is the management of the biological transformation and harvest of biological assets for
sale or for conversion into agricultural produce or into additional biological assets.
a. Agricultural activity
b. Agricultural management
c. Biological transformation
d. Biological management
_____26. Which of the following is an agricultural produce?
a. Tobacco plants
b. Sheep
c. Tea
d. Wool
_____27. PAS 41 is applicable to
a. Land related to agricultural activity
b. Intangible assets related to agricultural activity
c. Agricultural produce at the point of harvest
d. Bearer plants related to agricultural activity
_____28. Which of the following is not a feature of agricultural activity?
a. Capability of change
b. Management of change
c. Measurement of change
d. Freedom of change
_____29. Statement I: Costs to sell are the incremental costs directly attributable to the disposal of
an asset, excluding finance costs and income taxes.
Statement II: A group of biological assets is an aggregation of dissimilar living animals or plants.
a. True; True
b. True; False
c. False; True
d. False; False
_____30. Grapes, after harvest, will need significant time before it can be sold as wine. This product
should be accounted for in accordance with
a. IAS 2 c. IAS 40
b. IAS 16 d. IAS 41
_____31. A gain arising from the initial recognition of a biological asset should
a. Be recognized in profit or loss
b. Be recognized in other comprehensive income
c. Be recognized as prior period adjustment
d. Not be recognized
_____32. Which of the following is not an agricultural activity?
a. Tuna fishing from ocean
b. Farming of mollusks
c. Farming of fish
d. Raising domesticated animals in an agricultural setting to produce commodities
_____33. Dolphins, which are used for recreational purposes in water parks, should be classified in
accordance with
a. IAS 41 c. IAS 40
b. IAS 16 d. IAS 2
_____34. Which of the following is an agricultural produce?
a. Apple c. Margarine
b. Bush d. Sugar
_____35. Which of the following does not result in biological transformation
a. Degeneration c. Growth
b. Procreation d. Production