AGBM 106 Exam 2 Quizzes,
AGBM 106 Exam 1 and AGBM 106 Exam
2 (Quizzes) correctly answered to pass
(combined)
The lower the current ratio the more liquid the business. - correct answer ✔✔False
Imagine it is 12/31/2025 and a farm is completing its 2025 balance sheet. What is the farm's
current portion of term debt? - correct answer ✔✔the amount of principal to be paid on long
term loans in 2026
The higher the debt to asset ratio the more solvent the farm. - correct answer ✔✔False
A farm has total A of $100 and total D of $60. What is owner equity? - correct answer ✔✔$40
A farm has total A of $100 and total D of $60. What is the debt to asset ratio? - correct answer
✔✔0.60
A farm has current assets valued at $10, non current assets valued at $100, and owner equity of
$100. What is total D for this farm? - correct answer ✔✔$10
What is the correct numerator for ROA? - correct answer ✔✔total interest expense + net
income from operations
,How is total interest expense calculated? - correct answer ✔✔cash interest paid + change in
accrued interest
OWNERS PREFER ROE > ROA > 0 - correct answer ✔✔True
Ted has collected corn inventories by month for the USA over the past twelve years. Ted would
like to make a pivot table that shows average corn inventory by month. What variable should be
used for COLUMN? - correct answer ✔✔Month
What is the correct formula for ROE? - correct answer ✔✔NICO/AVERAGE E
Ted has collected corn inventories by month for the USA over the past twelve years. Ted would
like to make a pivot table that shows average corn inventory by month. What variable should be
used as the Sigma Value? - correct answer ✔✔Corn Inventory
A farm purchases 100 acres of land for $70,000. How will this transaction impact the farms net
income from operations (NICO) for that year? (FOCUS ON JUST THE TRANSACTION ITSELF NOT
ABOUT THE COSTS AND REVENUES THAT THE NEW LAND MAY GENERATE) - correct answer
✔✔it will not impact NICO
Where are loan principal payments recorded on an income statement? - correct answer
✔✔they are not recorded on an income statement
What it the preferred profitability measurement for judging managerial aptitude? - correct
answer ✔✔ROA
Jill would like to use the VLOOKUP function. What must be used for the third argument in the
function (the col_index_num argument)? - correct answer ✔✔a number
, A firm has a ROA of 10%. Investment A has a IRR of 7%, Investment B has a IRR of 5%. Which of
the following statements is true? - correct answer ✔✔the firm should not invest in either A or B
If we manage a business, what is the appropriate discount rate (as specified in this course)? -
correct answer ✔✔ROA
All other things being equal the greater a investments IRR the more attractive the investment. -
correct answer ✔✔True
Investment A has a coefficient of variation (CV) of 0.50. Investment B has a coefficient of
variation (CV) of 1.5. Which is the better investment based on the CV criteria? - correct answer
✔✔Investment A
Investment A has an NPV of $0.00, Investment B has an NPV of $-10.00. Which statement below
is correct? - correct answer ✔✔The investor should invest in Investment A
Investment A has an expected ROE of 10% and ROE standard deviation of 20%. What is the
coefficient of variation for this investment? - correct answer ✔✔2.00
Investment A has an NPV of $10.00, Investment B has an NPV of $-10.00. Which statement
below is correct? - correct answer ✔✔the investor should invest in A
If an investor would like the present value of their lump sum investment to grow what must be
true? - correct answer ✔✔the rate of return of the investment must be greater than the
investors discount rate
If an investment has an NPV of $0.00 then it is a viable investment. - correct answer ✔✔true
In a 401k plan the contributions are based on pre tax income. - correct answer ✔✔true
AGBM 106 Exam 1 and AGBM 106 Exam
2 (Quizzes) correctly answered to pass
(combined)
The lower the current ratio the more liquid the business. - correct answer ✔✔False
Imagine it is 12/31/2025 and a farm is completing its 2025 balance sheet. What is the farm's
current portion of term debt? - correct answer ✔✔the amount of principal to be paid on long
term loans in 2026
The higher the debt to asset ratio the more solvent the farm. - correct answer ✔✔False
A farm has total A of $100 and total D of $60. What is owner equity? - correct answer ✔✔$40
A farm has total A of $100 and total D of $60. What is the debt to asset ratio? - correct answer
✔✔0.60
A farm has current assets valued at $10, non current assets valued at $100, and owner equity of
$100. What is total D for this farm? - correct answer ✔✔$10
What is the correct numerator for ROA? - correct answer ✔✔total interest expense + net
income from operations
,How is total interest expense calculated? - correct answer ✔✔cash interest paid + change in
accrued interest
OWNERS PREFER ROE > ROA > 0 - correct answer ✔✔True
Ted has collected corn inventories by month for the USA over the past twelve years. Ted would
like to make a pivot table that shows average corn inventory by month. What variable should be
used for COLUMN? - correct answer ✔✔Month
What is the correct formula for ROE? - correct answer ✔✔NICO/AVERAGE E
Ted has collected corn inventories by month for the USA over the past twelve years. Ted would
like to make a pivot table that shows average corn inventory by month. What variable should be
used as the Sigma Value? - correct answer ✔✔Corn Inventory
A farm purchases 100 acres of land for $70,000. How will this transaction impact the farms net
income from operations (NICO) for that year? (FOCUS ON JUST THE TRANSACTION ITSELF NOT
ABOUT THE COSTS AND REVENUES THAT THE NEW LAND MAY GENERATE) - correct answer
✔✔it will not impact NICO
Where are loan principal payments recorded on an income statement? - correct answer
✔✔they are not recorded on an income statement
What it the preferred profitability measurement for judging managerial aptitude? - correct
answer ✔✔ROA
Jill would like to use the VLOOKUP function. What must be used for the third argument in the
function (the col_index_num argument)? - correct answer ✔✔a number
, A firm has a ROA of 10%. Investment A has a IRR of 7%, Investment B has a IRR of 5%. Which of
the following statements is true? - correct answer ✔✔the firm should not invest in either A or B
If we manage a business, what is the appropriate discount rate (as specified in this course)? -
correct answer ✔✔ROA
All other things being equal the greater a investments IRR the more attractive the investment. -
correct answer ✔✔True
Investment A has a coefficient of variation (CV) of 0.50. Investment B has a coefficient of
variation (CV) of 1.5. Which is the better investment based on the CV criteria? - correct answer
✔✔Investment A
Investment A has an NPV of $0.00, Investment B has an NPV of $-10.00. Which statement below
is correct? - correct answer ✔✔The investor should invest in Investment A
Investment A has an expected ROE of 10% and ROE standard deviation of 20%. What is the
coefficient of variation for this investment? - correct answer ✔✔2.00
Investment A has an NPV of $10.00, Investment B has an NPV of $-10.00. Which statement
below is correct? - correct answer ✔✔the investor should invest in A
If an investor would like the present value of their lump sum investment to grow what must be
true? - correct answer ✔✔the rate of return of the investment must be greater than the
investors discount rate
If an investment has an NPV of $0.00 then it is a viable investment. - correct answer ✔✔true
In a 401k plan the contributions are based on pre tax income. - correct answer ✔✔true
