AGEC 3423 Farm and Ranch
Management OKST Exam 1
SCHATZER
Accrual method of accounting - correct answer ✔✔Records income when it is earned and
expenses when they are incurred.
Accrued expense - correct answer ✔✔An expense that has been incurred, sometimes
accumulating over time, but has not been paid.
Balance sheet - correct answer ✔✔A systematic listing of the assets and liabilities of the
business at a given point in time.
Cash method of accounting - correct answer ✔✔You record income and expenses only when
actual cash transactions occur.
Depreciation - correct answer ✔✔An annual, non-cash expense to recognize the amount by
which an asset loses value due to use, age, and obsolescence.
Income Statement - correct answer ✔✔A summary of income and expenses for an accounting
period.
Leverage - correct answer ✔✔The use of borrowed capital to supplement and extend the use of
equity capital.
Management OKST Exam 1
SCHATZER
Accrual method of accounting - correct answer ✔✔Records income when it is earned and
expenses when they are incurred.
Accrued expense - correct answer ✔✔An expense that has been incurred, sometimes
accumulating over time, but has not been paid.
Balance sheet - correct answer ✔✔A systematic listing of the assets and liabilities of the
business at a given point in time.
Cash method of accounting - correct answer ✔✔You record income and expenses only when
actual cash transactions occur.
Depreciation - correct answer ✔✔An annual, non-cash expense to recognize the amount by
which an asset loses value due to use, age, and obsolescence.
Income Statement - correct answer ✔✔A summary of income and expenses for an accounting
period.
Leverage - correct answer ✔✔The use of borrowed capital to supplement and extend the use of
equity capital.
