Vocabulary Section

Non-Current Assets should liquidize after ...

• 1 year.

• 3 years.

• 5 years.

• 10 years.

Working Capital is defined as ....

• Assets - Liabilities

• Net Worth - Liabilities

• Current Assets – Current Liabilities

• Assets – Current Liabilities

The Debt Structure formula is defined as ...

• Liabilities Assets

• Total Liabilities Non–Current Liabilities

• Current Liabilities Non–Current Liabilities

• Current Liabilities Total Liabilities

The ability of a farm to cover its upcoming debts with assets that can be turned into cash is referred to as...

• Solvency

• Stability

• Equity

• Liquidity

The ability of a farm to cover all its debts with the assets it owns is referred to as...

• Solvency

• Stability

• Equity

• Liquidity

Joe is making a statement that projects the costs and revenue of adding a new irrigation system on his farm. What financial statement is he making?

• Whole-Farm Budget

• Enterprise Budget

• Income Statement

• Partial Budget

Kevin takes out a loan to buy a new piece of equipment for his farm. Over the course of the loan, he will make small payments every month then one large lump-sum payment at the end of the loan. What type of loan is this?

• Mortgage

• Balloon Loan

• Self-Liquidating Loan

• Operating Loan

Kevin is thinking about taking out another loan to buy a piece of equipment. For this loan, he will use it to buy the asset then at the loan's maturity he will sell the asset to pay off the loan. What type of loan is this?

• Mortgage

• Balloon Loan

• Self-Liquidating Loan

• Operating Loan

Which of these assets are considered non-Depreciable?

• Building

• Machinery and Equipment

• Land

• Breeding Livestock

If an asset is eligible, Section 179 allows an asset to be...

• depreciated under MACRS.

• fully depreciated in year one.

• sold without capital gains tax.

• bought using a value-added production grant.