Type of accounting system that will provide the most accurate income statement for a farm business
What is accrual accounting?
100
Which of the following would NOT be a farm operating expense? Purchase of:
Livestock feed
Fertilizer
Combine
Wheat Seed
What is purchase of a combine?
100
On a balance sheet, Net Worth is determined by.
What is subtracting total liabilities from total assets?
100
A business entity that is treated like a regular corporation except for rules regarding taxation.
What is a Sub-chapter S Corporation?
100
A current ratio shows the business'
What is ability to pay off their debts?
200
A accounting period for the farm business that covers the time period of July 1 to June 30 of each calendar year
What is a fiscal year accounting period?
200
Costs which change directly with the level of production.
What are variable costs?
200
The Net Capital Ratio is a measure of..
What is solvency?
200
This is affected most by the type of business organization a farmer chooses.
What is the transferability of ownership?
200
Depreciation should be included in.
What is Net farm Income statement?
300
The IRS requires farmers to use the accrual accounting system in determining net farm income. True or False
What is False?
300
Principal is referred to as.
What is the amount of money actually borrowed from a lender.
300
A financial statement that lists the cash and non-cash receipts and expenses of a farm during a specified period of time.
What is an income statement?
300
This is not basic principal of organized co-operatives.
What is voting based on stock owned?
300
When increasing the level of production of one enterprise causes a reduction in the level of production in another enterprise, these two enterprises are said to be.
What is Competitive?
400
What the Debt-Equity Ratio measures.
What is solvency?
400
If you are considering a change in your farming operation that will affect only a part of the total farm budget, this change would be evaluated using..
What is a partial budget?
400
The net worth of a farm is also called.
What is owner equity?
400
What a document held by a creditor on personal or real property to secure a loan is called.
What is a lien?
400
Good income tax management should...
What is maximize after tax income?
500
What is the Current Ratio a measure of?
What is liquidity?
500
A short term loan used to meet expenses during a production cycle, and usually paid back within a year or less.
What is an operating loan?
500
Determining the future value of money invested now at a specific rate of interest is called.
What is compounding?
500
What a document used to secure a real estate loan is called.
What is a mortgage?
500
A decrease in the value of the U.S. dollar on the world wide basis should result in..