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Ag Mech 2 - 2.02

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

If a small-engine shop owner has a $250,000 mortgage and owes Farm Credit Service $30,000 for this year’s payment, what amount should be entered on the non-current liability line of the financial statement?

a)

$30,000

b)

$220,000

c)

$250,000

d)

$280,000

2.

If Becky has a $500,000 mortgage on her land and buildings, and she 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)

$60,000

b)

$440,000

c)

$500,000

d)

$560,000

3.

A financial statement lists mortgages due after the current year as:

a)

current assets.

b)

current liabilities.

c)

non-current assets.

d)

non-current liabilities.

4.

If a welding shop has total assets of $500,000 and total liabilities of $300,000, what amount 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

5.

If a tractor dealer’s inventory shows supplies worth $41,000 and land valued at $200,000, what amount should be entered on the non-depreciable inventory line of the financial statement?

a)

$400

b)

$41,000

c)

$200,000

d)

$241,000

6.

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)

net worth

b)

total assets

c)

total liabilities

d)

current assets

7.

The part of a net worth statement that shows all debts is:

a)

current liabilities.

b)

debt-to-equity ratio.

c)

inventory.

d)

total liabilities.

8.

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

a)

current assets.

b)

equity.

c)

inventory.

d)

total liabilities.

9.

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.

10.

On a financial statement, net worth is:

a)

current assets minus current liabilities.

b)

current liabilities plus current assets.

c)

total assets minus total liabilities.

d)

total assets plus total liabilities.