Farm and Ranch Management Exam 2
WTAMU questions well answered
Formula for Net Farm Income from Operations - correct answer ✔✔Total Revenue minus Total
Expense
Formula for Net Farm Income - correct answer ✔✔NFIO (gain/loss) Sale of Capital Asset
Formula for Adjusted Net Farm Income from Operations - correct answer ✔✔NFIO + interest
expense
Formula for Return to Labor - correct answer ✔✔Return to Labor and Management minus
Opportunity Cost Management
Formula for Return to Management - correct answer ✔✔Return to Labor and Management
minus Opportunity Cost of Labor
What depreciation methods are for management purposes? - correct answer ✔✔Straight Line
and Double Declining Balance
What is depreciation? - correct answer ✔✔the annual loss of value of assets; an estimate
What assets can be depreciated? - correct answer ✔✔vehicles, machinery, equipment,
buildings, fences, purchased breeding livestock and wells.
WTAMU questions well answered
Formula for Net Farm Income from Operations - correct answer ✔✔Total Revenue minus Total
Expense
Formula for Net Farm Income - correct answer ✔✔NFIO (gain/loss) Sale of Capital Asset
Formula for Adjusted Net Farm Income from Operations - correct answer ✔✔NFIO + interest
expense
Formula for Return to Labor - correct answer ✔✔Return to Labor and Management minus
Opportunity Cost Management
Formula for Return to Management - correct answer ✔✔Return to Labor and Management
minus Opportunity Cost of Labor
What depreciation methods are for management purposes? - correct answer ✔✔Straight Line
and Double Declining Balance
What is depreciation? - correct answer ✔✔the annual loss of value of assets; an estimate
What assets can be depreciated? - correct answer ✔✔vehicles, machinery, equipment,
buildings, fences, purchased breeding livestock and wells.
