FBLA EXAM 1 2025/2026 (QUESTIONS WITH 100%
CORRECT ANSWERS)
Succession planning refers to: - planning to move the business to the younger generation
Calculate the deprecation of a new tractor that Fred Farmer has purchased. Purchase price is
$169,000, the salvage value is estimated to be $44,500, and Fred expects to own the tractor for 10
years and average 650 hours per year. What is the hourly economic or management depreciation? -
$19.15
Which one of the following would improve profitability of a farm business?
(a) buy more equipment to keep ahead of the neighbor
(b) use credit cards for purchasing supplies
(c) increase farm earnings and reduce farm costs
(d) get another loan to have more cash - (c) increase farm earnings and reduce farm costs
A drought in South America will:
(a) increase the chance for rain in the United States
(b) decrease the amount of snow that falls in the Rocky Mts.
(c) increase demand for U.S. grain
(d) decrease the price of U.S. grain - (c) increase demand for U.S. grain
Which one of the following is *not* a deductible cost at an agricultural business?
(a) machinery depreciation
(b) principle paid
(c) wages paid
(d) the value of raised livestock - (b) principle paid
Buyers and sellers in the futures market who do *not* raise or use the commodity they are trading in
are called: - speculators
Farm Financial Standards Council promotes uniformity of farm financial records for the purpose of: -
fair comparisons between all farms
CORRECT ANSWERS)
Succession planning refers to: - planning to move the business to the younger generation
Calculate the deprecation of a new tractor that Fred Farmer has purchased. Purchase price is
$169,000, the salvage value is estimated to be $44,500, and Fred expects to own the tractor for 10
years and average 650 hours per year. What is the hourly economic or management depreciation? -
$19.15
Which one of the following would improve profitability of a farm business?
(a) buy more equipment to keep ahead of the neighbor
(b) use credit cards for purchasing supplies
(c) increase farm earnings and reduce farm costs
(d) get another loan to have more cash - (c) increase farm earnings and reduce farm costs
A drought in South America will:
(a) increase the chance for rain in the United States
(b) decrease the amount of snow that falls in the Rocky Mts.
(c) increase demand for U.S. grain
(d) decrease the price of U.S. grain - (c) increase demand for U.S. grain
Which one of the following is *not* a deductible cost at an agricultural business?
(a) machinery depreciation
(b) principle paid
(c) wages paid
(d) the value of raised livestock - (b) principle paid
Buyers and sellers in the futures market who do *not* raise or use the commodity they are trading in
are called: - speculators
Farm Financial Standards Council promotes uniformity of farm financial records for the purpose of: -
fair comparisons between all farms
