Farm & Ranch Management Exam 2
QUESTIONS WELL ANSWERED
false - ANS ✔✔when using marcs depreciation a salvage value greater than zero is always used
true - ANS ✔✔When using the declining balance method of depreciation assets can be fully
depreciated out before the end of their useful life
50,000 - ANS ✔✔If you have a tractor that cost 85,000, you will use it for 5 years and then plan
to sell the asset for 35,000. What is the amount of depreciation you will account for
.2 - ANS ✔✔If you have a tractor that cost 85,000, you will use it for 5 years and then plan to
sell the asset for 35,000. What is the R value used for straight line depreciation?
false - ANS ✔✔If you are using double declining balance and the salvage value is estimated to
be zero, you will not have to switch to straight line depreciation
interest expense - ANS ✔✔The main difference between adjusted net farm income from
operations and net farm income from operations is
interest - ANS ✔✔___ is the amount paid to a lender for the use of borrowed money
true - ANS ✔✔The average asset value is 211,722 Carson Feeders if beginning asset is 208,000
and ending is 215,544
true - ANS ✔✔an income statement evaluates revenue and expenses for a firm over a period of
time
, false - ANS ✔✔there is no difference between net farm income and net farm income from
operations?
false - ANS ✔✔The typical format of income statement is Revenue, Expenses, Net farm income,
gain/loss on capital assets and then net farm income from operations
false - ANS ✔✔gain or loss on the sale of culled breeding livestock should be added and
included in with gain or loss from the sale of a capital asset on income statement
true - ANS ✔✔Given the following information..Total Revenue = 406,548, Total
Expenses(including interest expense) = 361,062, Gain on sale of capital asset = 800, Net Farm
Income from operations = 45,486 (true or false)
46,286 - ANS ✔✔Given the following information...Total reveneue = 406,548, Total
expenses(including interest expense) = 361,062, Interest Expense = 18,071, Gain on sale of
capital asset = 800. Calculate Net farm income
63,557 - ANS ✔✔Given the following information...Total reveneue = 406,548, Total
expenses(including interest expense) = 361,062, Interest Expense = 18,071, Gain on sale of
capital asset = 800. Calculate Adjusted Net Farm Income from Operations
true - ANS ✔✔The equation for break-even yield is total cost divided by expected selling price
false - ANS ✔✔There is only one possible enterprise budget for each enterprise
true - ANS ✔✔Some enterprises may have more than one source of revenue
increase - ANS ✔✔If output decreases with no change in total cost, break even price will
QUESTIONS WELL ANSWERED
false - ANS ✔✔when using marcs depreciation a salvage value greater than zero is always used
true - ANS ✔✔When using the declining balance method of depreciation assets can be fully
depreciated out before the end of their useful life
50,000 - ANS ✔✔If you have a tractor that cost 85,000, you will use it for 5 years and then plan
to sell the asset for 35,000. What is the amount of depreciation you will account for
.2 - ANS ✔✔If you have a tractor that cost 85,000, you will use it for 5 years and then plan to
sell the asset for 35,000. What is the R value used for straight line depreciation?
false - ANS ✔✔If you are using double declining balance and the salvage value is estimated to
be zero, you will not have to switch to straight line depreciation
interest expense - ANS ✔✔The main difference between adjusted net farm income from
operations and net farm income from operations is
interest - ANS ✔✔___ is the amount paid to a lender for the use of borrowed money
true - ANS ✔✔The average asset value is 211,722 Carson Feeders if beginning asset is 208,000
and ending is 215,544
true - ANS ✔✔an income statement evaluates revenue and expenses for a firm over a period of
time
, false - ANS ✔✔there is no difference between net farm income and net farm income from
operations?
false - ANS ✔✔The typical format of income statement is Revenue, Expenses, Net farm income,
gain/loss on capital assets and then net farm income from operations
false - ANS ✔✔gain or loss on the sale of culled breeding livestock should be added and
included in with gain or loss from the sale of a capital asset on income statement
true - ANS ✔✔Given the following information..Total Revenue = 406,548, Total
Expenses(including interest expense) = 361,062, Gain on sale of capital asset = 800, Net Farm
Income from operations = 45,486 (true or false)
46,286 - ANS ✔✔Given the following information...Total reveneue = 406,548, Total
expenses(including interest expense) = 361,062, Interest Expense = 18,071, Gain on sale of
capital asset = 800. Calculate Net farm income
63,557 - ANS ✔✔Given the following information...Total reveneue = 406,548, Total
expenses(including interest expense) = 361,062, Interest Expense = 18,071, Gain on sale of
capital asset = 800. Calculate Adjusted Net Farm Income from Operations
true - ANS ✔✔The equation for break-even yield is total cost divided by expected selling price
false - ANS ✔✔There is only one possible enterprise budget for each enterprise
true - ANS ✔✔Some enterprises may have more than one source of revenue
increase - ANS ✔✔If output decreases with no change in total cost, break even price will
