Which statement is correct?
A)Vines are biological assets until they are converted to juice.
B)Vines are biological assets until they are converted to wine.
C)Trees are biological assets until they are converted to logs.
D)Trees are biological assets until they are converted to lumber.

Question

Quizplus · Accepted Answer

Trees are considered biological assets while they are growing. Once they are harvested and converted into logs, they cease to be biological assets and become inventory under accounting standards. Vines, on the other hand, remain biological assets even when they are used to produce juice or wine, as the vine itself is not converted in the process.

Which Statement Is Correct