Hort 2 2.02

If a cut flower grower has a $500,000 mortgage on her land and buildings, and she 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

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

• current assets

• current liabilities

• non-current assets

• non-current liabilities

On a financial statement, net worth is:

• current assets - current liabilities

• current liabilities plus current assets

• total assets minus total liabilities

• total assets plus total liabilities

Cash and things that are owned by the individual or the business for which a financial statement is prepared are listed as:

• assets

• equity

• liabilities

• working capital

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

• total assets

• total liabilities

• inventory

• debt to equity ratio

On a financial statement, items that can be quickly converted to cash or that will be sold within 12 months are

• current assets

• current liabilities

• equity

• net worth

If a plant farm has total assets of $500,000 and total liabilities of $300,000, what number is the correct entry on the net worth line of a financial statement?

• 200,000

• 300,000

• 500,000

• 800,00

If a nursery owner has a $250,000 mortgage on his land and he owes Farm Credit Service $30,000 for this year’s payment, what amount should be entered on the non-current liability line of the financial statement?

• 30,000

• 250,000

• 220,000

• 280,000

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

• current assets

• equity

• inventory

• current liabilities

If a business has $10,000 cash on hand, $25,000 in a checking account and land valued at $300,000, on which line of a financial statement should the $335,000 total be entered

• current assets

• net worth

• total assets

• total liabilities