AgB Week 5 Online Practice

When the supply curve shifts up and to the right, what is the effect on price and quantity?

• Price increases, quantity decreases

• Price decreases, quantity increases

• Price increases, quantity increases

• Price decreases, quantity decreases

Which of the following would be considered a noncurrent asset?

• Fencing

• Cash on hand

• Savings account

• Accounts payable

Which of the following best describes an enterprise budget?

• The financial record of the farm income for the last fiscal year

• A record of noncurrent income to current income

• Comparison of a farm operation when moving from one from one crop to another

• The anticipated income and expenses for one production process, usually in one production period

The most accurate income statement for a farm business could be found using which of the following?

• Cash accounting method

• Accrual accounting method

• Receipt inventory and tracking

• Standard accounting handbook method

Basis in a futures market is the difference between:

• A cash price and a non cash price

• A cash price today and a cash price in the future

• Two different prices at different locations for the same commodity

• A futures contract price and a cash price for the same commodity

Mr. Chester White has an 800 sow hog operation and is concerned about rising corn prices for his feed. What would you recommend that Mr. White do to set a maximum purchase price for the corn?

• Contract with a local producer that is well known

• Use a put option

• Use a call option

• Purchase more corn than needed

Income tax planning falls into which of the following categories?

• Deferral of tax

• Savings of tax

• Both A & B

• Personal financial goals

The Gobble Turkey Farm, INC has just purchased a new feed unit at a cost of $125,000. The local loan agency has extended a loan at 3.5% interest for 10 years. Each annual payment is $15,411.25. After each year’s payment, what is the total amount owed called?

• Promissory Note

• Current Liability

• An Unsecured Loan

• Principal

A counting of the number, type, and value of assets owned at a point in time is called a(n):

• Value statement

• Net worth statement

• Farm gate

• Inventory

Depreciation is considered a(n):

• Non-relevant event

• Opportunity cost

• Variable cost

• Fixed Cost