AIC 302 EXAM 1 QUESTIONS AND ALL ANSWERS CORRECT
It is unlikely that farm management in the future would entail: ANSWER an
increase in smaller farms.
Does entail: Demanding healthy products, making decisions, and developing
new technologies.
ANSWER Describe the company's mission as the first stage in the strategic
decision-making process.
Which of the following approaches to asset appraisal is suitable for feeder cattle
that have been raised? ANSWER Cost of farm production
Which accounting approach is most likely to be used by farmers? ANSWER
Cash
ANSWER ROE (return on equity)>ROA (return on assets) if ROA (return on
assets)>i (interest rate).
ROE is greater than ROA.
How does net farm income differ from net farm income from operations?
ANSWER: Gain or loss on capital asset sales.
Which asset is the most liquid among the following? ANSWER Cash
Use the __________ depreciation technique if you want to have the highest net
worth at the conclusion of the year that you purchased a new tractor. The
Straight Line Answer
Which of the following has an impact on the company's NET WORTH?
ANSWER - Early loan repayment - Decrease in net farm revenue from
activities - Purchasing a truck outright without requiring a loan
It is unlikely that farm management in the future would entail: ANSWER an
increase in smaller farms.
Does entail: Demanding healthy products, making decisions, and developing
new technologies.
ANSWER Describe the company's mission as the first stage in the strategic
decision-making process.
Which of the following approaches to asset appraisal is suitable for feeder cattle
that have been raised? ANSWER Cost of farm production
Which accounting approach is most likely to be used by farmers? ANSWER
Cash
ANSWER ROE (return on equity)>ROA (return on assets) if ROA (return on
assets)>i (interest rate).
ROE is greater than ROA.
How does net farm income differ from net farm income from operations?
ANSWER: Gain or loss on capital asset sales.
Which asset is the most liquid among the following? ANSWER Cash
Use the __________ depreciation technique if you want to have the highest net
worth at the conclusion of the year that you purchased a new tractor. The
Straight Line Answer
Which of the following has an impact on the company's NET WORTH?
ANSWER - Early loan repayment - Decrease in net farm revenue from
activities - Purchasing a truck outright without requiring a loan
