Hort 2: 2.02

On a financial statement, net worth is:

• current assets minus current liabilities.

• current liabilities plus current assets.

• total assets minus total liabilities.

• total assets plus total liabilities.

If a cut flower grower has a $500,000.00 mortgage on her land and buildings, and she owes Farm Credit Service $60,000.00 for this year’s mortgage payment, what amount should be entered on the current liability line of the financial statement?

• $60,000.00

• $440,000.00

• $500,000.00

• $560,000.00

On a net worth statement, net worth is the same as:

• current assets.

• equity

• inventory

• total liabilities.

If a nursery owner has a $250,000.00 mortgage on his land and he owes Farm Credit Service $30,000.00 for this year’s payment, what amount should be entered on the noncurrent liability line of the financial statement?

• $30,000.00

• $220,000.00

• $250,000.00

• $280,000.00

The part of a net worth statement that shows all debts is:

• current liabilities.

• the debt-to-equity ratio.

• the inventory.

• total liabilities.

If a plant farm has total assets of $500,000 and total liabilities of $300,000, what number is the correct entry on the net worth line of a financial statement?

• $200,000

• $300,000

• $500,000

• $800,000

On a financial statement, items that can be quickly converted to cash or that will be sold within 12 months are:

• current assets.

• current liabilities.

• equity.

• net worth.

Mortgages that are not due this year are entered on a financial statement as:

• current assets.

• current liabilities.

• noncurrent assets.

• noncurrent liabilities.

If a bedding plant grower’s inventory shows plants worth $40,000, supplies worth $1,000, and land valued at $200,000, what amount should be entered on the nondepreciable inventory line of the financial statement?

• $400

• $41,000

• $200,000

• $241,000