Ag Mech. II Obj. 2.02

If a small-engine shop owner has a $250,000 mortgage and 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 Becky 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

A financial statement lists mortgages due after the current year as:

• current assets

• non-current assets

• current liabilities

• non-current liabilities

If a tractor dealer’s inventory shows supplies worth $41,000 and land valued at $200,000, what amount should be entered on the nondepreciable inventory line of the financial statement?

• $400

• $41,000

• $200,000

• $241,000

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

• $200,000

• $300,000

• $500,000

• $800,000

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?

• net worth

• total assets

• total liabilities

• current assets

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

• current liabilities

• debt-to-equity ratio

• inventory

• total liabilities

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 liabilties

• net worth

• equity

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.