Farm and Ranch Management -
Chapter 18 questions well answered
Examples of internal transactions include all the following except - correct answer ✔✔crediting
wheat straw sold off the farm as income to the wheat enterprise.
For a farm in which alfalfa hay is raised and fed to dairy cattle, to analyze alfalfa as a separate
enterprise, the value of the hay fed should be recorded as - correct answer ✔✔an expense to
dairy and income to alfalfa.
When two crops are produced on the same land in one year, the land cost charged to each crop
should be the annual cost divided by two. - correct answer ✔✔True
A farm or ranch service center may provide service to two or more profit centers. - correct
answer ✔✔True
When grain marketing is considered as a separate enterprise from producing the grain, the
"cost" of the grain going into to the enterprise should be estimated as - correct answer ✔✔the
cash price it could have been sold for at harvest.
Profits from farms rented under a crop share lease cannot be compared with those obtained
from farms rented under a cash rent lease. - correct answer ✔✔False
Livestock that are lost due to death loss should be assigned a value equal to what they could
have been sold for had they survived. - correct answer ✔✔False
Activities set up as "Cost Centers" in a farm accounting system - correct answer ✔✔are those
that provide services to other enterprises but do not generate any outside revenue.
Chapter 18 questions well answered
Examples of internal transactions include all the following except - correct answer ✔✔crediting
wheat straw sold off the farm as income to the wheat enterprise.
For a farm in which alfalfa hay is raised and fed to dairy cattle, to analyze alfalfa as a separate
enterprise, the value of the hay fed should be recorded as - correct answer ✔✔an expense to
dairy and income to alfalfa.
When two crops are produced on the same land in one year, the land cost charged to each crop
should be the annual cost divided by two. - correct answer ✔✔True
A farm or ranch service center may provide service to two or more profit centers. - correct
answer ✔✔True
When grain marketing is considered as a separate enterprise from producing the grain, the
"cost" of the grain going into to the enterprise should be estimated as - correct answer ✔✔the
cash price it could have been sold for at harvest.
Profits from farms rented under a crop share lease cannot be compared with those obtained
from farms rented under a cash rent lease. - correct answer ✔✔False
Livestock that are lost due to death loss should be assigned a value equal to what they could
have been sold for had they survived. - correct answer ✔✔False
Activities set up as "Cost Centers" in a farm accounting system - correct answer ✔✔are those
that provide services to other enterprises but do not generate any outside revenue.
