Ag Business (1)

The people that own a farm corporation are the __________.

• Members

• Shareholders

• Creditors

• Partners

A method of prorating the cost of a capital asset over its useful life is __________.

• Amortization

• Depreciation

• Credits

• Deductions

An increase in the number of non-farmers living in rural areas will cause __________.

• Farmers to pay more attention to the effects of their production practices

• An increase in agricultural production

• Profit maximization to be the only criterion for adopting new technologies

• A decrease in the need for farm labor

Estimating the total amount of operating credit that will be owed at the end of each time period during the year is useful for __________.

• Setting limits to the maximum balance on an operating line that a lender will approve

• Scheduling crop and livestock marketing

• Determining net worth at the end of the year

• Calculating total expenses

Net worth and owner equity are terms for the difference between __________.

• Total assets and total liabilities

• Total revenue and total expenses

• Total revenue and total cash expenses

• Total ending net worth or owner equity and ending net worth or owner equity

A fiscal accounting period is one which __________.

• Covers January 1 through December 31

• Is only 3 months in length

• Ends any month other than December 31

• Can only be used by government agencies

The rate of interest that ends up being charged on each payment made is known as:

• Annual interest rate

• Effective interest rate

• Nominal interest rate

• Compounded interest

Which of the following is a business function?

• Directing

• Controlling

• Marketing

• Monitoring

All are common factors of a C Corporation except:

• Limited liability

• Double taxation

• Unlimited life

• Pass-through taxation

Another name for a balance sheet is:

• Statement of owner equity

• Statement of cash flows

• Statement of financial position

• Statement of income