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Tulelake Field Day Farm Management Test 2020
This test includes questions from Chapter 3, 4, and 5 only.
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1. Which of those shown below are the three farm business activities to be included in an accounting system? *
2. This is an expense that has been incurred by the business but not yet paid. *
3. The revenue for a product that has been sold or a service provided but for which no payment (cash) has yet been received is known as this. *
4. This type of accounting entry is used to record an increase in an asset or expense account and a decrease in a liability or an owner equity account. *
5. A listing of all accounts used by the accounting system. *
6. Retained earnings and contributed capital are examples of these types of accounts. *
7. The ability to produce complete financial statements, including a balance sheet, at any time, directly from data already recorded in the system is a result of which accounting system? *
8. Debits represent a decrease to the asset cash within the accounting system. *
9. Study the image. Which statement best supports the transaction reported? *
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10. Study the image. Which statement best supports the transaction reported? *
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11. When using the Cash Accounting Method, expenses are recorded during the period in which that are paid. *
12. Fill in the blanks for the following: Anything of value owned by a business or an individual is called a(n) __________, and any debt or other financial obligation owed to someone else is referred to as a(n)__________. *
13. Which of the equations shown below correctly shows why a balance sheet is named a balance sheet? *
14. Which of the equations below correctly demonstrates a calculation for Owner Equity? *
15. Which statement below is true regarding Current Liabilities? *
16. Which term below represents the situation in which the amount of money remaining for the owner of the business if the assets were sold and all liabilities paid? *
17. Study the image. If the Current assets were changed from $100 to $200, what would be the amount of Owner equity? *
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18. Which items below are appropriate for using the Market Value method of Asset Valuation? *
19. Which method of Asset Valuation is appropriate for assets such as machinery, buildings, and purchased breeding livestock? *
20. The degree to which the liabilities of a business are backed up by assets is known as __________. *
21. The ability of a business to meet its cash financial obligations as they come due is known as ______________. *
22. If the total assets of a business are $1,478,547 and the total owner equity is $960,795, how much are the total liabilities? (Be sure to type your answer in the format as shown within the question (use a dollar sign, no spaces, use comma format, and NO decimal places) *
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23. Which of the following correctly shows the Current Ratio calculation? *
24. What is the difference between current assets and current liabilities known as? *
25. A Debt/Asset Ratio should have a value that is equal to or at least greater than 1. *
26. Solvency measures the relationships amongassets, liabilities, and equity. *
27. The purpose of the Statement of Owner Equity is to show how the equity sources changed during the accounting period. *
28. A balance sheet shows the financial position of a business over a period of time. *
29. Study the image. Calculate the missing Noncurrent liabilities. (Be sure to type your answer in the format shown for the Current liabilities within the image. (use a dollar sign, no spaces, use comma format, and NO decimal places) *
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30. How would an unpaid feed bill at a local feed store be classified on a balance sheet? *
31. An income statement is a summary of revenue and expenses for an accounting period. *
32. According to the Farm Financial Standards Council (FFSC) which below is the preferred term to use when referring to an income statement? *
33. Which statement below is true? *
34. All cash that flows into a business is counted as revenue. *
35. Farm business revenue results only from the production of agricultural commodities, services performed, and the gain or loss on the sale of assets used in that production. *
36. Principal payments paid on loans is not an expense. *
37. Which statement below is true? *
38. Which one of the following is not a characteristic of an asset that can be depreciated? *
39. This method of depreciation records a higher expense during the early years of an asset's useful life. *
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40. Study the image. Which depreciation method will have the higher book value at the end of Year 7? *
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41. A disadvantage of a cash accounting system is that the results can be misleading and lead to poor decision making with respect to farm operations. *
42. The amount by which revenue exceeds expenses is _________________. *
43. Which business is more profitable with respect to ROA? FARM A has net income of $10,500 and total assets of $7,500. FARM B has net income of $25,000 and total assets of $28,500. *
44. A statement of cash flows is important along with the income statement because an income statement does not show all of cash received or spent by the business. *
45. Assume that a new tractor is purchased on January I for $160,000 and given a salvage value of $40,000 and a useful life of 8 years. How much is the depreciation expense for Year 3 using the straight line method? *
46. Study the image. What activity belongs in the middle rectangle? *
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47. Which report best summarizes farm profitability? *
48. Which report shows the farm's financial condition at a specific point in time? *
49. If a farm accounting system operates on a fiscal year that begins on May 1, then what would be the last day of the accounting period? *
50. Which category of numbers below would be used to represent assets within a farm accounting system? *
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