AGEC 101 EVALUATION EXAMS 2025/2026 QUESTIONS
AND ANSWERS RATED A+
✔✔operating transaction activity examples - ✔✔milk, corn, soybeans, equine training,
purchasing supplies, + paying workers, taxes and purchasing services
✔✔liquidity ratios - ✔✔ability to meet day-to-day needs for the firm (easy to sell assets
or cash on hand)
✔✔solvency ratios - ✔✔ability to repay debts if the ended business today
✔✔current ratio - ✔✔relationship between current assets and current liabilities
✔✔current ratio formula - ✔✔current ratio= current assets/current liabilities
✔✔current ratio interpretation - ✔✔shows the farm's ability to meet its bills during the
next accounting period
✔✔current ratio industry standards - ✔✔want to high or above 2
✔✔debt to asset ratio (solvency) - ✔✔relationship between total debts and total assets
✔✔debt to asset ratio formula - ✔✔debt to asset ratio= total debt / total assets
✔✔debt to asset ratio interpretation and industry standards - ✔✔want to be low or
below 30
✔✔debt to equity ratio - ✔✔measures the relative size of claims on a firm's assets
between its lenders and the owner(s)
✔✔debt to equity ratio formula - ✔✔debt to equity ratio= total liabilities / total owners
equity
✔✔debt to equity ratio interpretation and industry standards - ✔✔want to be as low as
possible
✔✔return on invested capital (RCOIS) formula - ✔✔profit/assets
✔✔return on invested capital (RCOIS) interpretation and industry standards -
✔✔maximize the long-run value of investment, firms with the highest ROI are
maximizing long; want to be high
✔✔return on owners equity ratio formula - ✔✔return on owners equity= profit (before
taxes) / owners equity (found on the balance sheet)
AND ANSWERS RATED A+
✔✔operating transaction activity examples - ✔✔milk, corn, soybeans, equine training,
purchasing supplies, + paying workers, taxes and purchasing services
✔✔liquidity ratios - ✔✔ability to meet day-to-day needs for the firm (easy to sell assets
or cash on hand)
✔✔solvency ratios - ✔✔ability to repay debts if the ended business today
✔✔current ratio - ✔✔relationship between current assets and current liabilities
✔✔current ratio formula - ✔✔current ratio= current assets/current liabilities
✔✔current ratio interpretation - ✔✔shows the farm's ability to meet its bills during the
next accounting period
✔✔current ratio industry standards - ✔✔want to high or above 2
✔✔debt to asset ratio (solvency) - ✔✔relationship between total debts and total assets
✔✔debt to asset ratio formula - ✔✔debt to asset ratio= total debt / total assets
✔✔debt to asset ratio interpretation and industry standards - ✔✔want to be low or
below 30
✔✔debt to equity ratio - ✔✔measures the relative size of claims on a firm's assets
between its lenders and the owner(s)
✔✔debt to equity ratio formula - ✔✔debt to equity ratio= total liabilities / total owners
equity
✔✔debt to equity ratio interpretation and industry standards - ✔✔want to be as low as
possible
✔✔return on invested capital (RCOIS) formula - ✔✔profit/assets
✔✔return on invested capital (RCOIS) interpretation and industry standards -
✔✔maximize the long-run value of investment, firms with the highest ROI are
maximizing long; want to be high
✔✔return on owners equity ratio formula - ✔✔return on owners equity= profit (before
taxes) / owners equity (found on the balance sheet)
