Farm & Ranch Management Exam 3
questions well answered
Liquidity - correct answer ✔✔Ability to pay debts in the next 12 months
Current Ratio - correct answer ✔✔shows the ability to meet current debt obligations from
current assets in the next 12 months (total current farm assets)/(total current farm liabilities)
Solvency - correct answer ✔✔Ability to pay all debts if assets were sold
Net Worth - correct answer ✔✔Owner's Equity or Total assets - Total liabilities
Farm Financial Standards Council (FFSC) was established in 1994 in response to the
___________________. - correct answer ✔✔Farm Debt Crisis of 1983-87
On a specific date the balance sheet shows ____________ which is given by the difference
between the owner's (Assets) - (Liabilities). - correct answer ✔✔Net Worth
Income statements measure _____________ of a business. - correct answer ✔✔Profitability
Farm Financial Standards Council - correct answer ✔✔FFSC
List the 4 & 3 P's of Marketing. - correct answer ✔✔1. Product
2. Price
3. Place
questions well answered
Liquidity - correct answer ✔✔Ability to pay debts in the next 12 months
Current Ratio - correct answer ✔✔shows the ability to meet current debt obligations from
current assets in the next 12 months (total current farm assets)/(total current farm liabilities)
Solvency - correct answer ✔✔Ability to pay all debts if assets were sold
Net Worth - correct answer ✔✔Owner's Equity or Total assets - Total liabilities
Farm Financial Standards Council (FFSC) was established in 1994 in response to the
___________________. - correct answer ✔✔Farm Debt Crisis of 1983-87
On a specific date the balance sheet shows ____________ which is given by the difference
between the owner's (Assets) - (Liabilities). - correct answer ✔✔Net Worth
Income statements measure _____________ of a business. - correct answer ✔✔Profitability
Farm Financial Standards Council - correct answer ✔✔FFSC
List the 4 & 3 P's of Marketing. - correct answer ✔✔1. Product
2. Price
3. Place
