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AGBM 106 Exam 2 Questions And Answers
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Quiz 5 -
A constant payment loan is negotiated. The loan is for $100,000, the annual interest rate is
10%. The loan is for 10 years with one payment per year. What is the annual payment on this
loan? - Answer✔$16,274.54
The lower the current ratio the more liquid the business. - Answer✔False
A constant payment loan is negotiated. The loan is for $100,000, the annual interest rate is
10%. The loan is for 10 years with 12 payments per year. What is the monthly payment on this
loan? - Answer✔$1,321.51
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? - Answer✔the amount of principal to be paid on long term loans
in 2026
A dairy cow is purchased for $2,000. Assume the cow is considered a 5 year asset and has a
salvage value of $500. What is the cost value of the cow at the end of year 3? - Answer✔$1,100
The higher the debt to asset ratio the more solvent the farm. - Answer✔False
1
, ©FYNDLAY 2025 ALL RIGHTS RESERVED 5:17 PM A+
A farm has total A of $100 and total D of $60. What is owner equity? - Answer✔$40
A farm truck is purchased for $50,000. Assume the truck is a 5 year asset and has a salvage
value of $10,000. What is the annual depreciation expense of this truck? - Answer✔$8,000
A farm has total A of $100 and total D of $60. What is the debt to asset ratio? - 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? - Answer✔$10
Quiz 6 - Answer✔Quiz 6
What is the correct numerator for ROA? - Answer✔total interest expense + net income from
operations
How is total interest expense calculated? - Answer✔cash interest paid + change in accrued
interest
OWNERS PREFER ROE > ROA > 0 - 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? - Answer✔Month
What is the correct formula for ROE? - Answer✔NICO/AVERAGE E
2
AGBM 106 Exam 2 Questions And Answers
|Latest 2025 | Guaranteed Pass
Quiz 5 -
A constant payment loan is negotiated. The loan is for $100,000, the annual interest rate is
10%. The loan is for 10 years with one payment per year. What is the annual payment on this
loan? - Answer✔$16,274.54
The lower the current ratio the more liquid the business. - Answer✔False
A constant payment loan is negotiated. The loan is for $100,000, the annual interest rate is
10%. The loan is for 10 years with 12 payments per year. What is the monthly payment on this
loan? - Answer✔$1,321.51
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? - Answer✔the amount of principal to be paid on long term loans
in 2026
A dairy cow is purchased for $2,000. Assume the cow is considered a 5 year asset and has a
salvage value of $500. What is the cost value of the cow at the end of year 3? - Answer✔$1,100
The higher the debt to asset ratio the more solvent the farm. - Answer✔False
1
, ©FYNDLAY 2025 ALL RIGHTS RESERVED 5:17 PM A+
A farm has total A of $100 and total D of $60. What is owner equity? - Answer✔$40
A farm truck is purchased for $50,000. Assume the truck is a 5 year asset and has a salvage
value of $10,000. What is the annual depreciation expense of this truck? - Answer✔$8,000
A farm has total A of $100 and total D of $60. What is the debt to asset ratio? - 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? - Answer✔$10
Quiz 6 - Answer✔Quiz 6
What is the correct numerator for ROA? - Answer✔total interest expense + net income from
operations
How is total interest expense calculated? - Answer✔cash interest paid + change in accrued
interest
OWNERS PREFER ROE > ROA > 0 - 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? - Answer✔Month
What is the correct formula for ROE? - Answer✔NICO/AVERAGE E
2
