Please answer

1. Agricultural activity is

a. 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 assets.

b. The processes of growth, degeneration,

production, and procreation that cause qualitative

or quantitative changes in a biological asset.

c. The detachment of produce from a biological asset

or the cessation of a biological asset's life

processes.

d. The original and planned investigation undertaken

with the prospect of gaining new scientific or

technical knowledge and understanding.

2. Biological transformation results in which of the

following outcomes?

I. Growth (an increase in quantity or improvement

in quality of an animal or plant)

II. Degeneration (a decrease in the quantity or

deterioration in quality of an animal or plant)

III. Procreation (creation of additional living animals

or plants)

IV. Production of agricultural produce.

a. I, II, III and IV c. I and II only

b. I, II and III only d. I only

3. Which of the following is not an agricultural activity?

a. Raising livestock c. Aquaculture

b. Floriculture d. Ocean fishing

4. The following are agricultural activities, except

a. Annual or perennial cropping

b. Cultivating orchards and plantations

c. Deforestation

d. Forestry

5. Biological asset is

a. A living animal or plant

b. A harvested produce from a living animal or plant

c. An identifiable non-monetary asset without

physical substance

d. Tangible item that is held for use in the production

or supply of goods or services, for rental to others,

or for administrative purposes; and is expected to

be used during more than one period.

6. Which of the following are biological assets?

a. Dogs used in rendering security services.

b. Elephants in an animal theme park.

c. Plants displayed in an entity's administrative office.

d. None of these.

7. Which of the following is an inappropriate combination

of a biological asset and its agricultural produce?

Biological assets Agricultural produce

a. Sheep Wool

b. Dairy cattle Milk

c. Pigs Carcass

d. Trees in a timber

plantation

Logs

8. Which of the following is an agricultural produce?

a. Yarn c. Sausage

b. Cheese d. Felled tree

9. Bearer plant is a living plant that:

a. Is used in the production or supply of agricultural

produce.

b. Is expected 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. All of the above.

10. Bearer plant is carried at

a. Its cost less any accumulated depreciation and any

accumulated impairment losses.

b. Its fair value at the date of the revaluation less any

subsequent accumulated depreciation and

subsequent accumulated impairment losses.

c. Its fair value less costs to sell.

d. Either a or b.

11. Which of the following are bearer plants?

a. Trees grown for use as lumber

b. Trees that are cultivated both for their fruit and

their lumber

c. Maize and wheat

d. Cacao-bearing trees

12. Produce growing on bearer plants is

a. Biological asset

b. Inventory

c. Property, plant and equipment

d. Other asset

13. Mr. and Mrs. De Leon have a lifelong dream of having

a farm upon their retirement. So Mr. De Leon

promised his wife that he would set up a business

related to this. Being a man who always delivers on

his promises, he established Emong Farms Corp.

At the end of the reporting period, Ellery (Emong's

accountant) is considering the proper classification of

the following items:

Fruit trees

(including the fruits still attached

to the trees valued at P200,000)

P900,000

Harvested fruits 400,000

Grape vines 800,000

Dairy cattle 500,000

Harvested milk 50,000

Pigs 100,000

Love birds (Given as a gift to

De Leon couple)

2,000

How much should be classified as biological assets?

a. P1,600,000 c. P800,000

b. P1,400,000 d. P600,000

14. An entity shall recognize a biological asset or

agricultural produce when, and only when:

a. The entity controls the asset as a result of past

events.

b. It is probable that future economic benefits

associated with the asset will flow to the entity.

c. The fair value or cost of the asset can be measured

reliably.

d. All of the above.

15. Biological assets should be measured on initial

recognition and at subsequent reporting dates at

a. Fair value

b. Fair value less costs to sell

c. Cost less any accumulated depreciation and any

accumulated impairment losses

d. Lower of cost and net realizable value

16. In accordance with PIC Q&A No. 2018-4, to determine

that fair value cannot be reliably measured, an entity

must demonstrate

a. Quoted market prices for the biological asset are

not available.

b. Alternative fair value measurements for the

biological asset are determined to be clearly

unreliable.

c. Both a and b.

d. Either a or b.

17. Cost may sometimes approximate fair value,

particularly when:

a. Little biological transformation has taken place

since initial cost incurrence.

b. The impact of the biological transformation on

price is not expected to be material.

c. Either a or b.

d. Neither a nor b.

18. Cost may approximate fair value in which of the

following?

a. Fruit tree seedlings planted immediately prior to

the end of a reporting period.

b. The initial growth in a 30-year pine plantation

production cycle.

c. Either a or b.

d. Neither a nor b.

19. Which statement is correct?

a. PAS 41 takes the view that the fair value of

agricultural produce at the point of harvest can

always be measured reliably.

b. All costs related to biological assets that are

measured at fair value are recognized as expenses

when incurred, other than costs to purchase

biological assets.

c. Both a and b.

d. Neither a nor b.

20. Which of the following shall not be included in profit or

loss for the period in which it arises?

a. The gain on initial recognition of biological assets

at fair value.

b. Changes in fair value of biological assets during a

period.

c. A gain on initial recognition of agricultural produce

at fair value.

d. None of these.