AGRICULTURE TEST

The purpose of the beginning balance sheet for a company is to show

• if the business made a profit in the previous year

• the value of assets liabilities, and owner equality

• the change in owner equity for a given period

• the change in cash balance

cash on hand on a business balance sheet would most closely correspond to which of the following

• the balance in the farm checking and savings account

• the balance in the farm checking and savings account plus other current assest

• the cash balance in the farm hedging account

• the cash balance in the farm checking account and the personal checking account

The debt to assets ratio is measure of the solvency of a farm business. Which of the following indicates the business is not solvent

• 15.1%

• .35%

• 90%

• 106%

homer purchased 240 acres of timber land. he obtained a load for $142,229 at 4.75% interest with the local lender. What would be the amount of interest he would be required to pay for 9 months

• $5066.91

• $6,755.88

• $562.99

• $105,210.49

which of the following would be considered a current asset

• market livestock

• breeding livestock

• equipment

• land

which of the following would be considered a non-current liability

• accounts payable

• accrued interest

• operating loan balance

• land mortgage

a whole farm schedule of expected income and expense is a

• balance sheet

• partial budget

• budget

• depreciation schedule

there are_____ stages of production

• one

• two

• three

• no set number. it depends on the product being produced

am enterprise budget is

• a physical and financial plan for the entire farm business for a specified period of time

• a statement of projected cost and returns associated with one production process one production cycle

• a record of past production performance, usually for one production cycle

• the tools used in analyzing only changes in the farm operation and the potential change in net income

budgeting is not used to

• determine the useful its if assets

• estimate the amount of credit needed

• allow for experimentation with possible outcomes before resources are commited

• help with organizing