Farm business management CDE questions with 100 % correct answers

First step in decision making process - Define the problem Short term goals are normally achieved in - 1 year How do you find liquidity current ratios - Divide current assets by current liabilities How do you find liquidity working capital - Subtract current assets by current liabilities How do you find liquidity debt structure - Current liabilities divided by total liabilities x 100 How do you find liquidity asset structure - Current assets divided by total assets x 100 Cash flow budget projects what over a specific time period ? - Money flow, receipts, expenditures Modern farming is best described as - Capital intensive A farm budget is - A prediction of what will happen Fixed or long term assets - Items which are at least marketable and least readily converted into cash without loss sole proprietorship - Most common form of business arrangement in the US Long term credit should be used for such items as - Value reduction, amortization, diminishing