Chapter 1
The number of US farms has been ___________.
Decreasing
Pasture land is an example of a _________ resource.
a. human
b. physical
c. financial
b. physical
Selling 120 weaned calves at an average weight of 550 lb for $305/cwt would be an example of a _______________ activity.
a. production
b. investment
c. financing
a. production
What is the Accounting Formula?
Assets = Liabilities + Owners Equity
What is the top agricultural producing state in terms of cash receipts in the USA?
California
What has primarily been driving the advancements in agricultural productivity?
a. increased labor use
b. more favorable weather
c. market prices
d. technology
Deciding when to spray glyphosate would be an example of a _________________ decision.
Tactical
The one major exception to the cash accounting system is....
depreciation
If the current ratio is greater than 1, our business is....
a. solvent
b. liquid
c. insolvent
d. ill-liquid
b. liquid
What countries are included in the USMCA trade agreement?
United States, Mexico, Canada
Focusing on how the Russia -Ukraine War has impacted global grain prices would be an example of what type of "focus"?
External
What are the four functions of management
Planning, Implementing, Control, adjustment
I harvested and stored $100,000 worth of grain inventory in 2024. Under a cash accounting system in 2024, I would include a $100,000 worth of grain inventory.
a. True
b. False
False.
If our debt to asset ratio is greater than 1, our business is.....
a. solvent
b. liquid
c. insolvent
d. ill-liquid
c. insolvent
US is at a 73 year low beef cow inventory. What is the rough beef cow inventory as of 2025?
a. 90 million
b. 28 million
c. 9 million
d. 120 million
b. 28 million
Define specialization
When a farm, region, or country focuses on producing one or a few types of agricultural products instead of a wide variety.
Which function of management is involved with the execution of a plan of action?
A $6,000 account balance owed at the feed store is an example of a _______________.
account payable
You owe $10,000 of principle and $3,000 of interest on your mortgage next month. After this payment, your outstanding balance is $630,000. The principle and interest will show up on the ____________ portion of your balance sheet, and the outstanding balance will show up on the ____________ portion of your balance sheet.
Current liabilities; non-current liabilities
What is the scientific name for New World Screwworm?
a. Cochliomyia hominivorax
b. Chrysomya bezziana
c. Cochliomyia macellaria
d. Wohlfahrtia magnifica
a. Cochliomyia hominivorax
Why has the consolidation of the financial markets increased the need agricultural operators to keep better financial records?
1. Fewer lenders available.
2. Competing with non-ag entities, which is difficult given the complexity of farming
3. Ag is increasing use of technology, tech is expense, and therefore we need larger loans... which requires better documentation
What causes the decision making environment to be more difficult for a farmer?
a. Farmers can negotiate higher prices.
b. biological processes
c. fixed supply of land.
d. Both a and b
e. Both b and c
e. both B and C
I charged to account $12,000 for fuel. Under a accrual accounting system, this would show up as what ?
An increase in fuel expense
You own a feedlot. You are planning on selling 800 steers, at an average weight of 1550 lb, at a selling price of $185/cwt. A value of ____________ will show up in the ____________ portion in your balance sheet
$2,294,000; current asset
Roughly, what proportion of U.S. feeder cattle supply comes from Mexico?
a. 10-15%
b. less than 1%
c. 3 to 5 %
d. 1 - 2 %
c. 3 - 5%