Front

A cash flow budget project to the next year can provide information on: Project borrowing requirements and repayment ability, Return to the farm operator's labor and management, Net worth of the farm business, Rate of return on the farm investment

Back

Project borrowing requirements and repayment ability

Front

When local basis increases, it is an indication that

Back

Local demand is decreasing

Front

The cost of using a resource in one way is the return that could be obtained from using it in its most profitable alternative use. This economic principle is

Back

The principle of opportunity cost

Front

Which is the first level of government that could govern how your land is used?

Back

Township

Front

A farmer rents an adjacent 160 acres of cropland for $110 per acre to operate with the current 800 acres and existing equipment. The effect on the farm's costs will be:

Back

To decrease fixed costs per acre

Front

Accrual Accounting:

Back

Records income when earned and expense when incurred

Front

If a farmer discovered that he had 1000 more bushels of corn stored than he had estimated when he figured his net farm income for the year - this would...

Back

Raise his actual accrual net farm income

Front

In January a cattle feedlot operator is concerned that the on-going drought and the severe winter will create higher feeder cattle prices this fall. To reduce risk and uncertainty he could: Sell a live cattle contract for this October, Buy a live cattle contract for this October, Sell a feeder cattle contract for this October, Buy a feeder cattle contract for this October

Back

Buy a feeder cattle contract for this October

Front

Which of the following statements is a true statement about the cash method of accounting? It more accurately reports true net income from the farm, It is more complicated than the accrual system, It reports the receipts and the expenditures in the period in which they are received or paid, There is no difference between accrual and cash methods.

Back

It reports the receipts and the expenditures in the period in which they are received or paid

Front

When developing a marking plan which of the following is a consideration? Yield, Family living needs, Principle repayment, All of the above would be considered.

Back

All of the above would be considered.