3. Farm Management

Financial Management — Quiz

Test your understanding of financial management with 5 practice questions.

Practice Questions

Question 1

Which of the following best distinguishes accrual accounting from cash accounting in farm financial management?

Question 2

Given a farm with cash revenue of $200{,}000$, cash expenses of $120{,}000$, beginning inventory of $50{,}000$, ending inventory of $60{,}000$, and depreciation of $15{,}000$, what is the accrual net farm income?

Question 3

What does the term 'cost of capital' represent in agribusiness financial management?

Question 4

Calculate the debt-to-asset ratio for a farm with total liabilities of $400{,}000$ and total assets of $1{,}200{,}000$.

Question 5

Determine the break-even yield in bushels per acre for a crop with fixed costs of $120$ per acre, variable cost of $6$ per bushel, and price of $18$ per bushel.