Farm and Ranch Management Chapter
4 questions well answered
what is the measurement of the ability of the business to meet financial obligations as they
come due without disrupting the normal operations of the business? - correct answer
✔✔liquidity
what is the measurement of the liabilities of the business relative to the amount of owner
equity invested in the businesses, or indication of the ability to pay off all financial obligations if
all assets were sold? - correct answer ✔✔solvency
where are assets shown on the balance sheet? - correct answer ✔✔left or top
where are liabilities shown on the balance sheet? - correct answer ✔✔right or below assets
what does liabilities plus owner equity equal? - correct answer ✔✔assets
what are current assets that are also known as liquid assets? - correct answer ✔✔assets that
can be sold easily to generate cash
where is hedging gain or loss shown? - correct answer ✔✔under current assets
what are noncurrent assets? - correct answer ✔✔assets that aren't easy to sell
what are current liabilities? - correct answer ✔✔liabilities that will become due and payable
within one year
4 questions well answered
what is the measurement of the ability of the business to meet financial obligations as they
come due without disrupting the normal operations of the business? - correct answer
✔✔liquidity
what is the measurement of the liabilities of the business relative to the amount of owner
equity invested in the businesses, or indication of the ability to pay off all financial obligations if
all assets were sold? - correct answer ✔✔solvency
where are assets shown on the balance sheet? - correct answer ✔✔left or top
where are liabilities shown on the balance sheet? - correct answer ✔✔right or below assets
what does liabilities plus owner equity equal? - correct answer ✔✔assets
what are current assets that are also known as liquid assets? - correct answer ✔✔assets that
can be sold easily to generate cash
where is hedging gain or loss shown? - correct answer ✔✔under current assets
what are noncurrent assets? - correct answer ✔✔assets that aren't easy to sell
what are current liabilities? - correct answer ✔✔liabilities that will become due and payable
within one year
