Balance Sheet
Tell me the three categories included on a balance sheet.
What is asset, liability, and equity?
This statement has two different categories. They are..
What is revenue and expense?
What are liquidity, solvency, profitability, efficiency?
Debts that are currently due or due in the next year
What is a current liability?
What is the equation for working capital.
Working Capital = Current Assets - Current Liabilities
Define Asset and Liability
What is
Asset - Something the business owns
Liability - Something the business owes
The income statement calculation.
What is Revenue - Expenses = Net Income/Profit/Return?
What is liquidity?
Accounts payable, operating loans, and current portion of term debt are all...
What is current liabilities.
Compares the farm's ration to other similar operations.
What is comparative analysis?
Define a current asset
What is any item owned to be used in the upcoming accounting period?
Sales of raised crops/livestock and government payments fall in this category.
What is revenue?
The ability to generate profit using land labor, and management.
What is profitability?
Tell me 5 accounts that would be listed under non-current assets
Intermediate
Breeding Livestock
Machinery and Equipment.
Vehicles
Long Term
Land
Buildings and Structures
Land Improvements
Perennial Crops
The two types of accounting are as follows
What is single entry and double entry?
Accounts Receivable is a...
What is a current asset?
Insurance, Rent, Property Taxes fall in this category on this statement.
What is fixed expense?
Solvency is defined by...
What is the ability to meet long-term obligations?
Retained earnings, contributed captial
Cash Basis: Record when money changes hands
Accrual Basis: Record when earned/incurred
In a balance sheet both sides are equal. The equation is
Assets = Liabilities + Equity
Define variable expense and fixed expense.
What is
Fixed - an expense incurred even when no product is being produced
Variable - changes with a given level of input or usage.
Liquidity and solvency equations are calculated off this sheet.
What is balance sheet?
Define Equity
What is what you are worth?
Tell me what is listed on the balance sheet and what is listed on an income statement.
BS - Assets, liabilities, equity
IS- Revenue, expenses