ANS 2 Food - Obj. 2.01 Finances Lesson

Multiple Choice

On a financial statement, net worth is:

• current assets minus current liabilities.

• current liabilities plus current assets.

• total assets minus total liabilities.

• total assets plus total liabilities.

Multiple Choice

The part of a net worth statement that shows all debts is:

• current liabilities.

• the debt-to-equity ratio.

• the inventory.

• total liabilities.

Multiple Choice

If a boarding stable has total assets of $700,000 and total liabilities of $300,000, what number is the correct entry on the net worth line of a financial statement?

• $100,000

• $300,000

• $400,000

• $700,000

Multiple Choice

Mortgages that are not due this year are entered on a financial statement as:

• current assets.

• current liabilities.

• noncurrent assets.

• noncurrent liabilities.

Multiple Choice

If a riding stable has a $500,000 mortgage on land and buildings, and owes Farm Credit Service $60,000 for this year’s mortgage payment, what amount should be entered on the current liability line of the financial statement?

• $60,000

• $440,000

• $500,000

• $560,000

Multiple Choice

If a horse farmer has $6,000 cash on hand and $30,000 in a checking account, on which line of a financial statement should the $36,000 total be entered?

• Current assets

• Net worth

• Total assets

• Total liabilities

Multiple Choice

On a net worth statement, net worth is the same as:

• current assets.

• equity.

• inventory.

• total liabilities.

Multiple Choice

If items are to be sold within the next twelve months, they are considered:

• credit card debt.

• current assets.

• current liabilities.

• noncurrent debt.

Multiple Choice

If an equine business has $10,000 cash on hand, $30,000 in a checking account, and land valued at $300,000, on which line of a financial statement should the $340,000 total be entered?

• Current assets

• Net worth

• Total assets

• Total liabilities

Multiple Choice

If a boarding stable's financial statement shows total liabilities of $400,000 and a net worth of $200,000, the debt-to-equity ratio is:

• 1:3

• 1:4

• 2:4

• 4:2

Multiple Choice

If a boarding stable’s inventory shows 2 tons of feed worth $300 per ton, supplies worth $1,000, and 40 acres of land valued at $9,000 per acre, what amount should be entered for the total on the nondepreciable inventory line of the inventory page?

• $1,000

• $9,000

• $360,000

• $361,600

Multiple Choice

In considering your monthly budget, dinners out and groceries would be what?

• Fixed costs

• Variable costs

• Assets

• Depreciable Inventory

Multiple Choice

You are deciding whether or not to make a purchase using credit or debit. What is the difference?

• Debit is like cash, Credit is borrowed money

• Debit has an interest fee and credit does not

• Credit is free money and debit uses your money

• Credit is like cash, debit is borrowed money