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Animal Science-2.03 Assets and Liabilities

Total questions: 8

Worksheet time: 15mins

Name
Class
Date
1.

If a beef cattle producer has a $250,000 mortgage on his farm, and he 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?

a)

$30,000

b)

$220,000

c)

$250,000

d)

$280,000

2.

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

a)

$200,000

b)

$300,000

c)

$500,000

d)

$800,000

3.

If a swine producer has a $500,000 mortgage on his land and buildings, and he 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?

a)

$500,000.00

b)

$440,000.00

c)

$560,000.00

d)

$60,000.00

4.

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?

a)

Current assets

b)

Total assets

c)

Net worth

d)

Total liabilities

5.

Mortgages that are not due this year are entered on a financial statement as:

a)

current assets

b)

non-current assets.

c)

non-current liabilities

d)

current liabilities

6.

On a financial statement, items that can be quickly converted to cash or that will be sold within 12 months are:

a)

current assets.

b)

current liabilities.

c)

equity.

d)

net worth.

7.

If a beef farmer’s inventory shows 100 cattle worth $400 each, medicine and supplies worth $1,000, and land valued at $200,000, what amount should be entered on the nondepreciable inventory line of the financial statement?

a)

$241,000.00

b)

$200,000.00

c)

$41,000.00

d)

$400.00

8.

On a net worth statement, net worth is the same as:

a)

current assets

b)

equity

c)

inventory

d)

total liability