Ag Bus Terms
The loss in value of an asset over time.
What is depreciation?
Total income after expenses.
What is Net Income?
Money owed to any financial institution, group or individual on borrowed money.
What is interest?
The accounting system used by most farmers.
Something that is owed.
What is a liability?
Products brought into our country.
What is an import?
Something that is owned or possessed that has value.
What is an asset?
How quickly an asset can be turned into cash.
What is liquidity?
Total income before expenses are subtracted.
What is gross income?
Assets minus liabilities.
What is net worth?
A combination of agriculture and business.
What is agribusiness?
Another name for money.
What is capital?
Products produced to be sold in another country.
What are exports?
The freedom to produce and market any commodity.
What is free enterprise?
Money spent in the production of a commodity.
What is an expense?
Another name for a net worth statement.
What is a balance sheet?
Assets that are stored or are on hand to be sold.
What is inventory?
An amount of money that is owed to an individual.
What is an account receivable?
Another name for net worth.
What is owner's equity?
In accounting, a positive amount of money.
What is a credit?