AGEC Final PASSED Actual Exam Questions and CORRECT Answers

AGEC Final PASSED Actual Exam
Questions and CORRECT Answers
Only cash expenses and Revenue are included on a cash flow budget - CORRECT
ANSWER✔✔✔- True



Some enterprises may have more than one source of revenue - CORRECT ANSWER✔✔✔-
True


Opportunity costs are included on an enterprise budget - CORRECT ANSWER✔✔✔- True


All partial budgets will need to include some fixed ownership costs - CORRECT
ANSWER✔✔✔- False


A partial budget analyzes only two management alternatives at one time - CORRECT
ANSWER✔✔✔- True


Only changes in variable or operating costs are included on a partial budget - CORRECT
ANSWER✔✔✔- False


The primary use of a cash flow budget is to estimate profit for the coming year - CORRECT
ANSWER✔✔✔- False


A cash flow budget contains exactly the same information as an income statement only it is
shown by time period - CORRECT ANSWER✔✔✔- False


Only interest payments on noncurrent debt are included on a cash flow budget - CORRECT
ANSWER✔✔✔- False



S Corportions pay income taxes on the corporations' earnings - CORRECT ANSWER✔✔✔-
False

, The most common form of farm business organization is the LLC - CORRECT
ANSWER✔✔✔- False


An investment that has a positive net present value will also be financially feasible -
CORRECT ANSWER✔✔✔- False


A person requiring only a 6 percent return could pay more for an investment than someone
requiring an 8% return - CORRECT ANSWER✔✔✔- True


If a positive rate of inflation is epected, the real discount rate is smaller than the nominal
discount rate - CORRECT ANSWER✔✔✔- True



"Capital" includes machinery and livestock as well as cash - CORRECT ANSWER✔✔✔-
True


Farming and ranching typically use more capital per worker than the average United States
Industry - CORRECT ANSWER✔✔✔- True


A borrower would pay less total interest on a 10 year loan amortized under an equal principal
payment than on the same loan amortized under an equal total payment plan - CORRECT
ANSWER✔✔✔- True


Lomg-term lease agreements (greater than a single year) encourage operators to implement
more soil and water conservation practices than short-term agreements do. - CORRECT
ANSWER✔✔✔- True


A crop share tenant who receives two-thirds of the production and pays for all the fertilizer
would tend to apply more fertilizer than a profit maximizing owner-operator. - CORRECT
ANSWER✔✔✔- False


Leasing farmland rather than owning it generally gives the operator more management
freedom - CORRECT ANSWER✔✔✔- False