Budgeting for Agribusiness - Final Assessment

Which of the following defines budgeting?

• The amount of income received before the cost of goods and taxes

• The allocation of monetary funds based on a determined structure

• The amount of income after cost of goods and taxes are deducted

• Assets minus liabilities

Which of the following is NOT a reason for budgeting?

• Provides company or personal financial stability

• Generates a map of financial practices

• Guides efficient business decisions

• Allows companies to spend as much money as they want

Rent is an example of which of the following?

• Fixed

• Variable

• Net worth

• Asset

Which of the following is NOT a true statement?

• Gross income is the amount of income after the costs of goods and taxes are deducted

• Net income is also known as “after tax” income

• You can track spending by saving cash spending records

• Balance a budget by listing the net income

Which of the following is NOT a type of farming budget?

• Enterprise

• Whole farm

• Partial

• Liability

Which of the following is NOT an example of an asset?

• Cash

• Equipment

• Credit cards

• Livestock

Which of the following is NOT an example of a liability?

• Equipment loans

• Feed store bills

• Car loans

• Feed

Creating a budget does NOT consist of which of the following?

• Tracking spending

• Throwing away financial records

• Knowing your net income

• Eliminating unnecessary expenses

Which of the following is an example of a fixed expense?

• Utility bill

• Insurance

• Gas

• Animal health care

How is net worth calculated?

• Net worth = assets - liabilities

• Net worth = liabilities - assets

• Net worth = net Income - gross Income

• Net worth = liabilities + assets