2021 State Final Farm Business Management

Which of the following is the final step in the decision-making process?

• Gather Information

• Evaluate Alternative Solutions

• Evaluate Decisions

• Define the Problem

Which of the following refers to goals that can be achieved within one year?

• Objectives

• Short-term Goals

• Intermediate Goals

• Long-term Goals

Which financial record shows the financial condition of a business at a particular point in time, and includes all assets and liabilities of the business?

• Chart of Accounts

• Net Worth Statement (Balance Sheet)

• Income Statement (Profit and Loss)

• Statement of Cash Flows

Which of the following would not be found in the operations Physical Records?

• Unpaid Family Labor

• Crop Yields

• Weaning Weights

• Depreciation Schedules

Under which of the following accounts would you find an Operating Loan?

• Accounts Payable

• Prepaid Expenses

• Accounts Receivable

• Cash Account

Which measure of liquidity is defined as the current assets divided by the current liabilities?

• Current Ratio

• Working Capital

• Debt Structure

• Asset Structure

Net Worth or Owner Equity refers to the difference between

• Total Assets and Total Liabilities

• Total Revenue and Total Expenses

• Total Cash Income and Total Cash Expenses

• Beginning Net Worth and Ending Net Worth

Which of the following measures of profitability is defined as the Net Farm Income from Operations plus interest, depreciation and amortization expenses?

• Return on Equity (ROE)

• Cost of Debt (COD)

• Operating Profit Margin Ratio (OPMR)

• Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA)

Which of the following would not be included in gross cash income?

• Sales of organic grain

• Milk sales

• Sales of cull breeding livestock

• Increase in inventory value

If the farm business farms more acres, which of the following costs are least likely to change?

• Average Fixed Costs per acre

• Total Variable Costs per acre

• Average Variable Costs per acre

• Average Total Costs per acre