how is the net farm income reported on the 2018 income statement calculated
o :## Gross cash income-total cash expense +_ total inventory change +_ depreciation
The statement summarizing the value of business assets and liabilities is often referred to as a
balance sheet because
o :## assets =...
FFA FBM CDE Questions and Answers
how is the net farm income reported on the 2018 income statement calculated
o :## Gross cash income-total cash expense +_ total inventory change +_ depreciation
The statement summarizing the value of business assets and liabilities is often referred to as a
balance sheet because
o :## assets = liabilities + owner equity or net worth
The purpose of the balance sheet is to show at a point in time
o :## The value of assets, liabilities and owner equity
If the statement of cash flow indicates an increase in the cash balance, this means
o :## total cash received was larger than total cash used
net farm income will influence all of the following except
o :## Total cash expenses
which of the following is likely found in a revenue ledger tracking sources of cash revenue?
o :## all of the above
The chart of accounts normally includes
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o :## all the above
When using cash accounting records a business will recognize
o :## Income and expense transactions at the time of actual cash transactions
Which of the following financial statements list the cash and non-cash receipts and expenses of a
business during a specified period of time
o :## income statement
Which of the following financial statements explains the change in net worth for an accounting
period
o :## statement of owner equity
which of the following financial statement explains the change in cash balance for an accounting
period?
o :## Statement of cash flow's
which of the following is not included in the calculation of accrual adjusted gross farm income
o :## change in prepaid supplies
A major advantage of cash accounting when compared to accrual accounting is it
o :## provides more flexibility in a managing taxable income
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The original cost basis of a capital asset, plus improvements, less accumulated depreciation is
referred to as the
o :## adjusted basis of the asset
A method of prorating the cost of a capital asset over it's useful life is
o :## depreciation
The reason for making accrual adjustments to a cash income is to allow
o :## A better match of production with the expenses associated with the timing of
production
Contributed ( or paid in ) capital, plus retained earnings, plus valuation equity is equal to
o :## total assets minus total liabilities
A complete set of financial statements will allow Brian to calculate each of the following financial
measures except
o :## Per bushel breakeven measures
Budgets are used and planning to evaluate the impact of future actions. To improve the accuracy
of a budget, the operator may use
o :## all of the above
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