Chapter 1, Question 1.2 

Assets:

1. Biological Assets: To me this is one of the most important aspects of this company as it is the key to the gaining of income for the company.

2. Trade and other receivables: To me this is the money that AACo is yet to receive from the customers. They can negatively affect the company if they are not paid back, as they are then a debt in the company.  

3. Inventories and consumables:  To me inventories and consumables are for the use of ACCo in their sales. They are the expenses, which are valued at low prices and net realisable value.

Liabilities

1. Trade and other payables: To myself they are the liabilities, which are used for goods and services, which ACCo requires before the en of a financial year for unpaid accounts, from the year.

2. Current tax liabilities: My understanding is that these are the estimated figures for the amount of tax, which should be paid. It is based from the current taxable income period.   

3. Provisions: These appear to myself as the benefits, which the company offers its employees. For example, wages, salaries and leave and long service leave.

Equity

1. Contributed equity: Appears as the costs, which are associated with new shares and are referred to as a deduction, net of tax or from the proceeds.

2. Reserves: To myself these are the parts of the shareholders equity.

3. Retained earnings: This for me means the for ever changing in the companies profit each year after tax, taking away any other expenses involved.