The current ratio is a measure of solvency while working capital is a measure of liquidity
ANSWER
False
Sally Farms has reported the following information on her Balance sheet:
Current Assets: 55,400
Current Liabilities: 45540
NC Assets: 784000
NC liabilities: 298000
ANSWER
Sally farms dept to equity ratio is .69
Growing Enterprises began the year with total assets of 3,7500,000 and total liabilities of
900,000 using this info and the accounting equation, answer the following question: If grow-
ing's total liabilities increased by 110000 and its owners' equity decreased by 800000 during
the year, what was the amount of its total assets at the end of the year?
ANSWER
3,060,000
Sarah Stewart is trying to complete a balance sheet for her ranch. She needs your help clas-
sifying the following piece of information. She has an accounts recievable of 1600. This
would be classified as an
ANSWER
Current asset
NC liability?
1
, ANSWER
loan on land
Debits are recorded on the left hand side of a t-account
ANSWER
True
Sarah Stewart is trying to complete a balance sheet for her ranch. She needs help classifying
the following piece of information. Sarah owes 300,000 on her ranch mortgage
ANSWER
NC liabilities
The degree to which a farm's assets adequately cover or exceed its liabilities is referred to as
ANSWER
solvency
Product differentiaiton means producing crops and livestock with different characteristics for
specific markets
ANSWER
True
Which function of management is concerned with carrying out management decisions
ANSWER
implementation
A fiscal accounting period is one which
ANSWER
Ends on any date other than December 31
2
ANSWER
False
Sally Farms has reported the following information on her Balance sheet:
Current Assets: 55,400
Current Liabilities: 45540
NC Assets: 784000
NC liabilities: 298000
ANSWER
Sally farms dept to equity ratio is .69
Growing Enterprises began the year with total assets of 3,7500,000 and total liabilities of
900,000 using this info and the accounting equation, answer the following question: If grow-
ing's total liabilities increased by 110000 and its owners' equity decreased by 800000 during
the year, what was the amount of its total assets at the end of the year?
ANSWER
3,060,000
Sarah Stewart is trying to complete a balance sheet for her ranch. She needs your help clas-
sifying the following piece of information. She has an accounts recievable of 1600. This
would be classified as an
ANSWER
Current asset
NC liability?
1
, ANSWER
loan on land
Debits are recorded on the left hand side of a t-account
ANSWER
True
Sarah Stewart is trying to complete a balance sheet for her ranch. She needs help classifying
the following piece of information. Sarah owes 300,000 on her ranch mortgage
ANSWER
NC liabilities
The degree to which a farm's assets adequately cover or exceed its liabilities is referred to as
ANSWER
solvency
Product differentiaiton means producing crops and livestock with different characteristics for
specific markets
ANSWER
True
Which function of management is concerned with carrying out management decisions
ANSWER
implementation
A fiscal accounting period is one which
ANSWER
Ends on any date other than December 31
2
