2022 MN state exam

Front

Inflation can be described as:

Back

An increase in the price of goods, money has decreased purchasing power.

Front

Accrual adjusted income is cash income adjusted for changes in ______.

Back

Inventories

Front

Liquidity ratios are calculated using information from which financial statement(s)? a. Balance Sheet. b. Income Statement. c. Statement of Cash Flows. d. All of the above.

Back

Balance Sheet.

Front

Depreciation is the accounting method used to deduct the cost of a business ______ over its useful life.

Back

Asset

Front

The cost to produce a bushel of corn on an acre of land will _______ as yield increases.

Back

decrease

Front

A(n) _________ policy is purchased by farmers to help protect their machinery, equipment, livestock, grain, and other farm assets from losses.

Back

Insurance

Front

Hedging is defined as taking ________ positions in the cash and futures market.

Back

Opposite

Front

Which of the following is not one of the 5 C’s of credit that lenders use to evaluate loan requests? a. Certification, b. Character, c. Collateral, d. Capacity

Back

Certification

Front

What tax form is used to report farm income and expenses?

Back

Schedule F

Front

What type of insurance do employers carry to help cover the medical costs and lost wages for an employee that is hurt on the farm?

Back

Workers’ Compensation