AGEC 101 STUDY GUIDE 2025/2026 QUESTIONS AND
ANSWERS RATED A+
✔✔Flow Concept Statement - ✔✔What kind of statement is an income statement?
✔✔Income Statement - ✔✔Where does revenue go?
✔✔Income Statement - ✔✔Where does cost of goods sold go?
✔✔Income Statement - ✔✔Where does gross margin go?
✔✔Income Statement - ✔✔Where does operating expenses go?
✔✔Income Statement - ✔✔Where does capital gains/losses go?
✔✔Revenue - ✔✔What is selling goods to earn money?
✔✔Cost of Goods Sold - ✔✔What are materials you pay for for production?
✔✔Operating Expenses - ✔✔What are everyday expenses?
✔✔Add - ✔✔What do you do to an income statement during a capital gain?
✔✔Subtract - ✔✔What do you do to an income statement during a capital loss?
✔✔Capital Loss - ✔✔Happens when you sell something for less than it is worth.
✔✔Revenue - Expenses - ✔✔What is the Net Farm Income formula?
✔✔Maximize Profit - ✔✔What is the goal of producers?
✔✔Maximize Utility - ✔✔What is the goal of consumers?
✔✔Natural - ✔✔Type of resource that is water and land
✔✔Human - ✔✔Type of resource that is labor and education
✔✔Capital - ✔✔Type of resource where goods are produced
✔✔X Axis - ✔✔Where does quantity go on the S&D graph?
✔✔Y Axis - ✔✔Where does price go on the S&D graph?
ANSWERS RATED A+
✔✔Flow Concept Statement - ✔✔What kind of statement is an income statement?
✔✔Income Statement - ✔✔Where does revenue go?
✔✔Income Statement - ✔✔Where does cost of goods sold go?
✔✔Income Statement - ✔✔Where does gross margin go?
✔✔Income Statement - ✔✔Where does operating expenses go?
✔✔Income Statement - ✔✔Where does capital gains/losses go?
✔✔Revenue - ✔✔What is selling goods to earn money?
✔✔Cost of Goods Sold - ✔✔What are materials you pay for for production?
✔✔Operating Expenses - ✔✔What are everyday expenses?
✔✔Add - ✔✔What do you do to an income statement during a capital gain?
✔✔Subtract - ✔✔What do you do to an income statement during a capital loss?
✔✔Capital Loss - ✔✔Happens when you sell something for less than it is worth.
✔✔Revenue - Expenses - ✔✔What is the Net Farm Income formula?
✔✔Maximize Profit - ✔✔What is the goal of producers?
✔✔Maximize Utility - ✔✔What is the goal of consumers?
✔✔Natural - ✔✔Type of resource that is water and land
✔✔Human - ✔✔Type of resource that is labor and education
✔✔Capital - ✔✔Type of resource where goods are produced
✔✔X Axis - ✔✔Where does quantity go on the S&D graph?
✔✔Y Axis - ✔✔Where does price go on the S&D graph?
