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Exam (elaborations)

FFA FBM CDE UPDATED Exam Questions and CORRECT Answers

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how is the net farm income reported on the 2018 income statement calculated - Ans Gross cash income-total cash expense +_ total inventory change +_ depreciation The statement summarizing the value of business assets and liabilities is often referred to as a balance sheet because - Ans assets = liabilities + owner equity or net worth The purpose of the balance sheet is to show at a point in time - Ans The value of assets, liabilities and owner equity If the statement of cash flow indicates an increase in the cash balance, this means - Ans total cash received was larger than total cash used

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