1.

Biological assets

A.Are fond only in biotech entities.

B.Are living animals are living plants and mass 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.

2.

A bearer plant is a living plant that

A.Is used in the production or supply of agricultural produce.

B.Is used to bear produce for more than one period.

C.Has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales

D.Must possess all of these characteristics.

3.

Which of the following criteria must not be satisfied before a biological asset can be recognized?

A.The entity controls the site as a result of past events.

B.It is probable that future economic benefits relating to the asset will flow to the entity.

C.An active market for the assets exists.

D.The fair value can be measured reliably.

4.

Generally speaking, biological assets relating to agricultural activity shall be measured using.

A.Historical cost.

B.Historical cost less depreciation less impairment.

C.A fair value approach.

D.Net realizable value.

5.

Which of the following is unlikely to be used in fair value measurement of biological assets?

A.Quoted market price.

B.The most recent market transaction price.

C.The present value of the expected net cash flows.

D.External independent valuation.

6.

Which is not a major characteristic of property, plant and equipment?

A.The property, plant and equipment are tangible assets.

B.The property, plant and equipment are used in business.

C.The property, plant and equipment are expected to be used over a period of more than one year.

D.The property, plant and equipment are subject to depreciation.

7.

Which of the following is not a major characteristic of a plant asset?

A.Possesses physical substance

B.Acquired for resale

C.Acquired for use

D.Long-term in nature

8.

The cost of property acquired on credit is equal to

A.the invoice price minus the discount regardless of whether the discount is taken or not.

B.the invoice price minus the discount if paid within the discount period.

C.the invoice price before cash discount.

D.cash price equivalent.

9.

What is the order of priority that should be recorded as the amount of property that is acquired through the issuance of shares of the entity?

I.Par or stated value of the equity securities issued

II.Fair value of the property received

III.Fair value of the equity securities issued

A.I, II, III

B.III, II, I

C.II, III, I

D.II, I, III

10.

What is the order of priority that should be recorded as the amount of property that is acquired in exchange of bonds payable?

I.Fair value of the asset received

II.Face amount of the bonds payable

III.Fair value of the bonds payable

A.I, II, III

B.II, III, I

C.II, I, III

A.III, I, II

11.

An intangible asset is identifiable when

A.It is separable.

B.It arises from contractual and other legal rights.

C.It is either separable or it arises from contractual and other legal right.

D.It is neither separable nor it arises from contractors and other legal right.

12.

An intangible asset shall be recognized if

A.It is probable that future economic benefits attributable to the asset will float to the entity.

B.The cost of the intangible asset can be measured reliably.

C.It is possible that future economic benefits attributable to the asset will float to the entity and the cost of the intangible asset can be measured reliably.

D.It is probable that future economic benefits attributable to the asset will flow to the entity and the cost of the intangible asset can be measured reliably.

13.

Which of the following does not describe intangible assets?

A.They lack physical existence.

B.They are monetary assets.

C.They provide long-term benefits.

D.They are classified as long-term assets.

14.

The major problem of accounting for intangibles is determining

A.fair value.

B.separability.

C.salvage value.

D.useful life.

15.

It is a symbol, sign or slogan or name used to mark a product to distinguish it from other products.

A.Patent

B.Trademark

C.Copyright

D.Franchise

16.

Which statement is true about biological assets?

A.Biological answers are measured at fair value less cost of disposal.

B.When fair value cannot be determined reliably, the biological asset should be measured at cost less accumulated depreciation and impairment losses.

C.Where there is production cycle of more than one year for biological asset, separate disclosure is encouraged for physical change in price change.

D.All of these statements are true about biological assets.

17.

The cost of land typically includes the purchase price and all of the following costs except

A.grading, filling, draining, and clearing costs.

B.Unpaid real property taxes up to date of acquisition assumed by the buyer

C.private driveways and parking lots.

D.assumption of any liens or mortgages on the property.

18.

Which of the following is not chargeable to land?

A.Cost of option cost to buy the land

B.Cost of survey

C.Cost of trees, shrubs and other landscaping

D.Escrow fees

19.

Insurance taken during the construction of a building is debited to

A.Insurance expense

B.Prepaid Insurance

C.Building

D.Insurance Claim Payable

20.

The legal life of trademark is

A.Ten years and may be renewed for periods of 10 years each.

B.Ten years and non-renewable for another 10 years.

C.Seven years and may be renewed for periods of 7 years each.

D.Seven years and may be renewed for periods of 10 years each.

Genesys Company has the following information pertaining to its biological assets for the year 2020:

A herd of 150, 3-year old animals was held at January 1, 2020. Eight animals aged 2.5 years were purchased on July 1, 2020 for P 3,400, and ten animals were born on July 1, 2020. No animals were sold or disposed of during the period. Per unit fair values less estimated point-of-sale costs were as follows:

3.0-year old animal at January 1, 2020

2,000

Newborn animal at July 1, 2020

1,500

2.5-year old animal at July 1, 2020

3,400

Newborn animal at December 31, 2020

2,600

0.5-year old animal at December 31, 2020

3,000

3.0-year old animal at December 31, 2020

2,750

2.5-year old animal at December 31, 2020

3,650

4.0-year old animal at December 31, 2020

3,000

Instructions:

21. How much is the balance of biological assets as of January 1, 2020?

22. How much of the increase in the fair value of the biological asses due to price change?

23. How much of the increase in the fair value of the biological assets due to physical change?

24. What is the fair value of the biological assets as of December 31, 2020?

25. If four 2.5 years old animal was sold on July 1, 2020, how much is the balance of biological assets as of December 31, 2020?

26. The following accounts were found in the general ledger of Passion Company as of December 31, 2020:

Unamortized discount on bonds payable

P

120,000

Losses in early years of company

450,000

Trademarks

750,000

Patents

150,000

Amount set up by Board of Directors as goodwill

300,000

Deposits with advertising agency which will be used to promote goodwill

45,000

Organization costs

50,000

Unamortized bond discount

155,000

Copyright

244,000

Franchise to operate in Cebu

100,000

Marketing costs of introducing new products

150,000

Research and development costs expected to benefit future periods

420,000

What is the total amount of intangible assets?