Farm Business Management Practice
Exam questions well answered
Which of the following are economic resources used in agricultural production? - correct answer
✔✔Land, Labor, Capital, and Entrepreneurial Skill
What state is directly south of Nebraska? - correct answer ✔✔Kansas
Which state in had the highest output (as measured in dollars) of total farm production? -
correct answer ✔✔California
Which of the following states has the highest farm output per person? - correct answer
✔✔Nebraska
Which crop produces the most revenue for Nebraska farmers each year? - correct answer
✔✔Corn
What is another name for a profit and loss statement? - correct answer ✔✔Income Statement
On a balance sheet, what must balance? - correct answer ✔✔Assets and the total of liabilities
and owners' equity
Which of the following is NOT a financial statement? - correct answer ✔✔Partial Budget
In Nebraska, during which season is corn typically harvested? - correct answer ✔✔Spring
, Which of the following is an asset? - correct answer ✔✔Fence
When should accounting transactions be recorded when using a cash accounting system? -
correct answer ✔✔Whenever cash is exchanged
In accounting, what does the "matching principle" try to match? - correct answer ✔✔Revenue
and expenses
A farmer uses accrual accounting. At the end of the year he or she makes an entry to reflect the
use of fertilizer purchased in a different accounting period. What type of entry is this? - correct
answer ✔✔An adjusting entry
How many acres are in one square mile? - correct answer ✔✔640
What is the main advantage of cash accounting compared to accrual accounting? - correct
answer ✔✔Ease of use
It is possible for a farm or ranch to show positive profits on the income statement, but have a
cash flow issue. - correct answer ✔✔True
What does the abbreviation "cwt" mean? - correct answer ✔✔Hundred weight
Assume two farmers used identical production methods. The only difference is that one
producer rents and the other is an owner, but has a mortgage. Which producer will show a
higher profit? - correct answer ✔✔The owner
See #18, which producer is likely to have greater cash flow? - correct answer ✔✔The renter
Exam questions well answered
Which of the following are economic resources used in agricultural production? - correct answer
✔✔Land, Labor, Capital, and Entrepreneurial Skill
What state is directly south of Nebraska? - correct answer ✔✔Kansas
Which state in had the highest output (as measured in dollars) of total farm production? -
correct answer ✔✔California
Which of the following states has the highest farm output per person? - correct answer
✔✔Nebraska
Which crop produces the most revenue for Nebraska farmers each year? - correct answer
✔✔Corn
What is another name for a profit and loss statement? - correct answer ✔✔Income Statement
On a balance sheet, what must balance? - correct answer ✔✔Assets and the total of liabilities
and owners' equity
Which of the following is NOT a financial statement? - correct answer ✔✔Partial Budget
In Nebraska, during which season is corn typically harvested? - correct answer ✔✔Spring
, Which of the following is an asset? - correct answer ✔✔Fence
When should accounting transactions be recorded when using a cash accounting system? -
correct answer ✔✔Whenever cash is exchanged
In accounting, what does the "matching principle" try to match? - correct answer ✔✔Revenue
and expenses
A farmer uses accrual accounting. At the end of the year he or she makes an entry to reflect the
use of fertilizer purchased in a different accounting period. What type of entry is this? - correct
answer ✔✔An adjusting entry
How many acres are in one square mile? - correct answer ✔✔640
What is the main advantage of cash accounting compared to accrual accounting? - correct
answer ✔✔Ease of use
It is possible for a farm or ranch to show positive profits on the income statement, but have a
cash flow issue. - correct answer ✔✔True
What does the abbreviation "cwt" mean? - correct answer ✔✔Hundred weight
Assume two farmers used identical production methods. The only difference is that one
producer rents and the other is an owner, but has a mortgage. Which producer will show a
higher profit? - correct answer ✔✔The owner
See #18, which producer is likely to have greater cash flow? - correct answer ✔✔The renter
