ANS 2- 2.02

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

• current assets

• equity

• inventory

• total liabilities

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 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

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

• current assets.

• current liabilities.

• noncurrent assets.

• noncurrent liabilities.

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

• $200,000

• $300,000

• $500,000

• $800,000

If a beef cattle producer has a $250,000 mortgage on his farm, and he owes Farm Credit Service $30,000 for this year’s payment, what amount should be entered on the noncurrent liability line of the financial statement?

• $30,000

• $220,000

• $250,000

• $280,000

If a swine producer has a $500,000 mortgage on his land and buildings, and he 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?

• $60,000.00

• $440,000.00

• $500,000.00

• $560,000.00

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.

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

• current liabilities.

• debt-to-equity ratio.

• inventory.

• total liabilities.

If a beef farmer’s inventory shows 100 cattle worth $400 each, medicine and supplies worth $1,000, and land valued at $200,000, what amount should be entered on the nondepreciable inventory line of the financial statement?

• $400.00

• $41,000.00

• $200,000.00

• $241,000.00