Farm Business Management EXAM WITH CORRECT ANSWERS
The measure of how effective the business is in generating revenue from the production and management decisions is: Financial Efficiency Which statement is used to analyze the profitability of the farm? Income Statement Total Farm Equity divided by total farm assets is: equity to asset ratio How is net worth calculated? total assets - total liabilities A measurement of what percent of the total assets of the business is owed to the creditors is: Debt to asset ratio A net capital ratio measures: Solvency A strong current ratio for a farm business would be: greater than 1.5:1 The ability of the business to generate enough cash to pay bills without disrupting business operations is: Liquidity
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farm business management exam with correct answers