AgBiz and Finance

Financial Statements

100

What is the formula for owner's equity on the balance sheet? 

Assets - Liabilities

200

Which statement shows how much profit a business made during a specific period

Income statement

300

Which financial statement would you look at to the the current cash balance? 

Balance sheet

400

Which of the following would be considered a noncurrent asset? 

a. cash

b. accounts receivable

c. inventory

d. equipment

d. equipment

500

A farm's income statement shows gross revenue of $200,000, cost of goods sold $95,000, and total operating expenses of $45,000. What is operating profit? 

$60,000

Ratios

100

A firm has a current ratio of 1.2. Is this firm liquid?

Yes. 

200

current ratio, quick ratio, and working capital are examples of measures of ___________________.

liquidity

300

If a business has $40,000 in TL and $20,000 in OE, what is their debt to equity ratio? 

2

400

T/F. A higher quick ratio means better short term liquidity

True

500

A business has profit before taxes of $10,000 and total assets of $100,000. What is its return on investment? 

.1 or 10%

Budgets

100

Which budget focuses on the revenues of a single enterprise?

enterprise budget

200

T/F. A partial budget considered the entire farm operation

False. 

300

Which budget tracks monthly cash receipts and payments?

Cash flow budget

400

A partial budget change increases cost by $1,200 but increases revenue but $1,900. Should you make the change? provide  evidence to support your answer. 

+$700. yes, make the change. 

500

You plan to market 7,200 bushels of corn. If projected price is $4.60/bu and marketing costs are $0.23/bu, which is the expected revenue from sales? 

4.60 - 0.23 = $4.37/bu x 7200 bu - $31,464

Break Even

100

If selling price per unit increases, ceteris paribus, the break even quantity will _____________. 

decrease

200

At the break even point, what is the total profit?

$0

300

If a business sells 500 units at $10 each, and incurs $4,000 in total costs, what is their profit? 

$1,000

400

What is the break even quantity if fixed costs are $5,000, variable cost per unit is $4, and the selling price per unit is $9? 

1,000 units

500

Fixed costs are $18,000, variable costs per unit is $6, and selling price per unit is $11. What is the break even quantity? 

3,600 units (18,000 / (11-6)). 

Legal Structures & Random

100

Which legal structure has one owner and unlimited liability?

Sole Proprietorship

200

Who elects the board of directors in a corporation?

Shareholders

300

Which business structure is subject to double taxation?

C corp

400

A S corp is limited to _________ shareholders

less than 100

500

Using market lingo, someone who believes the market price is going to increase in the future can be described as....

a. bullish

b. bearish

c. optimistic

d. pessimistic 

bullish