Accounting Accounting, Quizzes of Accounting

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5. Which of the following financial attributed would nat be used to measure inventory? a. Historical cost b. Current replacement cost c. Net realizable value d. Present value at future cash flows Answer. d. Present value at future cash flows Problem 19-1 Multiple choice 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 inthe statement of financial position c. Must be measured at cost d. Do not generally have future economic benefits §.Agricultural produce is a. The harvested product from biological asset b.Valued at the time of harvest at the cost of production c.Valued at each reporting period at fair value less cost of disposal d.All of the choices are correct regarding agricultural product Answer a. The harvested product from biological 6G.Agricultural activity results in which of the following type of asset? a.Biological asset only b. Agricultural produce only c.Both biological asset and agricultural d.Neither biological asset nor agricultural : 2. It is the management by an entity of the biological transformation and harvest of biological assets for sale or for conversion into agricultural produce into additional biological asset. a Agricultural activity b.Biological activity cc. Economic activity d.Development activity ‘ a Agricultural activi 3.Biological assets are measured at a.Cost b.Lower of cost and net realizable value c.Net realizable value d.Fair value less cost to disposal 4.Agricultural produce is measured at a.Fair value b.Fair value less cost of disposal at the point of harvest c.Net realizable value d.Net realizable value less normal profit margin 7.Agricultural activity includes all of the following, except a.Raising livestock b. Perennial cropping c.Aquaculture d.Ocean fishing Answer. d. Ocean fishing 8.Biological transformation results from asset changes through all of the following, except a.Growth b.Degeneration c.Procreation d. Production of agricultural produce 9.1t is a market in which transactions for the asset or liability take place with sufficient regularity and volume to provide pricing information on an going basis. a.Active market b.Principal market ¢.Global market d. Financial market Answer 4. Active market 10.Which of the following should not be considered