Farm Management

Front

Assets

Back

Resources owned by a business (e.g., cash, equipment, land, inventory).

Front

Liabilities

Back

Debts or financial obligations of the business.

Front

Equity (Net Worth)

Back

The owner's financial interest in the business; calculated as: Equity = Assets - Liabilities.

Front

Depreciation

Back

The loss of value of an asset over time.

Front

Liquidity

Back

The ability of a business to meet short-term financial obligations.

Front

Solvency

Back

The ability of a business to meet long-term financial obligations.

Front

Opportunity Cost

Back

The value of the next best alternative foregone when making a decision.

Front

Break-even Price

Back

The price at which total revenue equals total cost.

Front

Break-even Yield

Back

The yield needed to cover costs at a given price.

Front

Fixed Costs

Back

Costs that do not change with production levels (e.g., insurance, property taxes).