ACP 329: Farm Enterprise Management Midterm Examination Reviewer
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Questions and Answers

What is the main purpose of proper recording in farm management?

  • To define basic accounting terms
  • To avoid overestimation and underestimation of financial reports (correct)
  • To assess farm performance through income statements
  • To track investment activities in the business

    • Which of the following is NOT mentioned as a sample farm record in the lesson?

  • Asset valuation reports (correct)
  • Employee records
  • Inventory reports
  • Transaction journals

    • According to the passage, which of the following is the definition of net farm income?

  • Total revenue minus total expenses (correct)
  • Profit minus debit
  • Total revenue plus total expenses
  • Total assets minus total liabilities

    • What is the main purpose of a balance sheet in an accounting system?

    <p>To show the financial condition of the business at a specific time</p> Signup and view all the answers

    Which of the following is NOT a characteristic of a depreciable asset mentioned in the passage?

    <p>Has an increasing market value</p> Signup and view all the answers

    What is the purpose of a depreciation schedule in farm accounting?

    <p>To record annual depreciation on depreciable assets</p> Signup and view all the answers

    What does the equity/asset ratio measure?

    <p>The proportion of a business's assets that are financed by owners' equity</p> Signup and view all the answers

    What is the purpose of analyzing liquidity and solvency based on the balance sheet?

    <p>To assess the financial health and stability of the business</p> Signup and view all the answers

    Which of the following is considered a revenue on an income statement?

    <p>Both a and c</p> Signup and view all the answers

    How is Return on Investment (ROI) calculated?

    <p>ROI = Net Farm Income / Total investment</p> Signup and view all the answers

    What does a negative Net Farm Income indicate?

    <p>The farm enterprise is experiencing losses</p> Signup and view all the answers

    The learning outcome of this lesson is to compute the ___ of a farm enterprise.

    <p>Total Investment</p> Signup and view all the answers

    Which of the following is NOT a challenge in farm management in the 21st century?

    <p>Decrease in productivity</p> Signup and view all the answers

    Which of the following is NOT one of the four general business strategies for farmers in the 21st century?

    <p>Diversified product portfolio</p> Signup and view all the answers

    What technology is mentioned as aiding in efficient yield monitoring?

    <p>Global Positioning System (GPS)</p> Signup and view all the answers

    What is an 'undifferentiated' agricultural product?

    <p>An item that is identical regardless of source</p> Signup and view all the answers

    Which of the following is NOT mentioned as an essential skill for human resources management in modern farm operations?

    <p>Salesmanship</p> Signup and view all the answers

    What is a significant concern regarding environmental and health issues in modern agriculture?

    <p>Effects of agricultural waste on air and water quality</p> Signup and view all the answers

    What is the primary objective of farming as a business?

    <p>Increasing production and productivity</p> Signup and view all the answers

    According to the lesson, which of the following is NOT one of the roles of a manager?

    <p>Agricultural roles</p> Signup and view all the answers

    What is the main purpose of the implementation process in farm management?

    <p>To adapt to unforeseen changes</p> Signup and view all the answers

    Which of the following characterizes farming according to the lesson?

    <p>It is characterized in terms of its main process, biological, and subject to high risk and uncertainty</p> Signup and view all the answers

    What is the significance of obtaining various information about the farm for better farm management?

    <p>To enhance agricultural productivity</p> Signup and view all the answers

    What is the learning outcome of the Acquiring and Organizing Management Information lesson?

    <p>Explaining the purposes and uses of records</p> Signup and view all the answers

    What is the formula for calculating annual depreciation using the Straight-Line Method (SLM)?

    <p>Annual Depreciation = (Cost - Salvage Value) / Useful Life</p> Signup and view all the answers

    In the Declining Balance method of depreciation, what happens when depreciation stops?

    <p>The book value becomes equal to the salvage value</p> Signup and view all the answers

    What is the purpose of using the Partial-Year Depreciation method?

    <p>To calculate depreciation for assets purchased during the year</p> Signup and view all the answers

    Which valuation method values an asset at its original cost?

    <p>Cost Method</p> Signup and view all the answers

    What is the purpose of a balance sheet?

    <p>To estimate the net worth or owner equity of a business</p> Signup and view all the answers

    How is the current ratio calculated?

    <p>Current Ratio = Current Assets / Current Liabilities</p> Signup and view all the answers

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