Reference no: EM132983176

Problem 1: It is the harvested product of the entity's biological assets

a) Biological assets

b) Agricultural produce

c) Management produce

d) Harvest

Problem 2: When a company purchases land with a building on it and immediately tears down the building so that the land can be used for the construction of a plant, the costs incurred to tear down the building should be?

a) Amortized over the estimated time period between the tearing down of the building and the completion of the plant.

b) Expensed as incurred.

c) Added to the cost of the plant.

d) Added to the cost of the land.

Problem 3: The cost of land typically includes the purchase price and all of the following costs except:

a) Private driveways and parking lots.

b) Grading, filling, draining, and clearing costs.

c) Street lights, sewers, and drainage systems cost.

d) Assumption of any liens or mortgages on the property.

Problem 4: You are a business manager. During the period, you have authorized the acquisition of a machine that will be used in your company's manufacturing activities in the next 5 years. In your selection of an appropriate accounting policy for the recognition and measurement of the machine, which of the following reporting standards is most relevant?

a) PAS 1

b) PAS 2

c) PAS 16

d) PAS 32