Which of the Following Statements Is Correct with Respect to Accounting

question 8

Multiple Choice

Which of the following statements is correct with respect to accounting for biological assets as required in AASB 141?

• A) A biological asset may initially be recognised at cost when market-determined prices or value are not available and for which alternative estimates of fair value are not available.
• B) If a biological asset is initially recognised at cost it should be measured at cost less any accumulated depreciation.
• C) A biological asset that was initially recognised at fair value less point-of-sale costs may subsequently be recognised at cost when fair value less point-of-sale costs is no longer available.
• D) A biological asset may initially be recognised at recoverable amount.

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Definitions:

Investment Project

An initiative to allocate resources with the expectation of achieving future returns.

Present Discounted Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to calculate the present value of future earnings or obligations.

Future Income

Expected earnings or revenue that an individual or business anticipates receiving in the future.

Interest Rate

The percentage charged on the total amount of borrowed money or paid on saved or invested capital.