Agriculture Intermediate Acc. PDF

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P a g e | 1Chapter 20AgricultureNAME: Date: Professor: Section: Score:QUIZ: 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...

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Chapter 20 Agriculture NAME: Professor:

Section:

Date: Score:

QUIZ: 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. b. PAS 2, Inventories. c. PAS 16, Property, Plant, and Equipment. d. PAS 40, Investment Property.

3.

Generally speaking, biological assets relating to agricultural activity should be measured using a. Historical cost. b. Historical cost less depreciation less impairment. c. A fair value approach. d. Net realizable value.

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.

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.

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6.

Which of the following costs are not included in costs to sell? a. Commissions to brokers and dealers. b. Levies by regulatory agencies. c. Transfer taxes and duties. d. Transport and other costs necessary to get the assets to a market.

Use the following information for the next four questions: The following information pertains to Madagascar Co. Sheep 500,000 Rubber products 10,000 Trees in a timber plantation 95,000 Maize plants 40,000 Lumber 62,000 Pigs 200,000 Roasted peanuts 20,000 Cotton plants 10,000 Peanut plants 5,000 Sugarcane 25,000 Tobacco plants 45,000 Tea bushes 800,000 Dairy cattle 1,000,000 Fruit trees 600,000 Tea 43,000 Rubber trees 300,000 Yarn 22,000 Carpet 33,000 Logs 45,000 Wheat plants 60,000 Cheese 75,000 Sausages 88,000

Wool Thread Felled trees Clothing Milk Carcass Sugar Harvested cotton Harvested peanuts Harvested cane Picked leaves Oil palms Picked grapes Picked fruit Grape vines Harvested latex Cured tobacco Wine Processed fruit Palm oil Bean plants Cured hams

6,000 3,000 8,000 150,000 9,000 7,000 67,000 13,000 140,000 22,000 3,000 300,000 2,000 10,000 2,000,000 10,000 320,000 500,000 20,000 50,000 20,000 92,000

7. How much is classified as biological assets that are accounted for under PAS 41 Agriculture? a. 2,660,000 b. 2,000,000 c. 6,000,000 d. 2,250,000 8. How much is classified as property, plant and equipment that are accounted for under PAS 16 Property, Plant and Equipment? a. 4,000,000 b. 4,860,000 c. 4,560,000 d. 3,650,000 9. How much is classified as agricultural produce? a. 149,000 b. 248,000 c. 290,000

d. 230,000

10. How much is classified as inventory? a. 1,480,000 b. 1,600,000 c. 1,540,000

d. 1,880,000

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“The name of the Lord is a strong tower; the righteous run to it and are safe.” (Proverbs 18:10)

- END SOLUTIONS: BA Sheep Rubber products Trees in a timber plantation Maize plants Lumber Pigs Roasted peanuts Cotton plants Peanut plants Sugarcane Tobacco plants Tea bushes Dairy cattle Fruit trees Tea Rubber trees Yarn Carpet Logs Wheat plants Cheese Sausages Wool Thread Felled trees Clothing Milk Carcass Sugar Harvested cotton Harvested peanuts Harvested cane Picked leaves Oil palms Picked grapes Picked fruit Grape vines Harvested latex Cured tobacco Wine Processed fruit Palm oil Bean plants Cured hams

TOTALS

PPE

AP

INVTY

500,000 10,000 95,000 40,000 62,000 200,000 20,000 10,000 5,000 25,000 45,000 800,000 1,000,000 600,000 43,000 300,000 22,000 33,000 45,000 60,000 75,000 88,000 6,000 3,000 8,000 150,000 9,000 7,000 67,000 13,000 140,000 22,000 3,000 300,000 2,000 10,000 2,000,000 10,000 320,000 500,000 20,000 50,000 20,000 92,000

2,000,000

4,000,000

230,000

1,600,000...