Which Statement Is Not Correct

question 31

Multiple Choice

Which statement is not correct?

• A)Accounting for biological assets is covered by the requirements of IAS 41.
• B)Biological assets include grapes, milk, wine, cheese and lumber.
• C)End of processing activities are covered under the requirements of IAS 18.
• D)Post harvesting processing activities are covered under the requirements of IAS 2.

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Definitions:

Preincorporation Subscription

An agreement by an individual to purchase shares in a corporation that has yet to be formed.

Six-Month

Relating to or denoting a period or term of six months, often used in the context of time-specific agreements or conditions.

Debentures

A type of debt instrument not secured by physical assets or collateral but backed only by the general creditworthiness and reputation of the issuer.

Unsecured Debt

Unsecured debt refers to loans or credits not backed by collateral, meaning the lender relies on the borrower's promise to pay back the debt.