The Balances in the Unadjusted Columns of a Work Sheet

question 98

Multiple Choice

The balances in the unadjusted columns of a work sheet will agree with:

• A) whatever balances management has decided to report.
• B) the balances reflected in the company's unadjusted trial balance.
• C) the balances in the company's post-closing trial balance.
• D) the balances reflected in the company's financial statements.
• E) the balances management budgeted for the accounting period.

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Definitions:

Biological Assets

Living plants or animals that are used in agricultural activities from which agricultural produce is harvested, accounted for under specific accounting standards.

Fair Value

An estimate of the price at which an asset or liability could be exchanged in a current transaction between willing parties.

AASB 141

An Australian Accounting Standards Board standard that concerns agriculture, detailing the accounting for agricultural activity including the transformation of biological assets (living plants and animals) into agricultural produce.

IAS 41

The International Accounting Standard that deals with the accounting for agriculture, including the recognition and measurement of biological assets.