1) The Farm Financial Standards Council (FFSC) recommends a cost column and a FMV (fair market value) column for the presentation of the Balance Sheet. Which column do you use for analysis?

Select one:

a.Cost

b.FMV

2) The main reasons farmers do not properly analyze their financial statements is due to time constraints to (1) complete the necessary steps and (2) learn and understand analysis.

Select one:

True

False

3) If a farmer wants to see how his liquidity compares to the benchmark or others, he/she would use which calculation?

Select one:

a.Working Capital

b.Current Ratio

4) Which ratio would look better if a farmer overvalued machinery and land?

Select one:

a.Current Ratio

b.Cash Ratio

c.Debt-to-Assets

d.Debt-to-EBITDA

5) Which of the following is true regarding the FBFM Farm Business Farm Management per acre information?

Select one:

a.It averages information for 5,500 farmers who use the FBFM services.

b.The information is based on crop year.

c.There are several limitations to the data.

d.All of the above are true.

6) The FBFM information will allow farmers to compare against other farmers in their area, however which expense per acre may not be as helpful or comparable?

Select one:

a.Chemical Expense Per Acre

b.Seed Expense Per Acre

c.Interest Expense Per Acre

d.Depreciation Expense Per Acre

7) The largest source for non-real estate loans for farmers is:

Select one:

a.Commercial Banks

b.FSA

c.Farm Credit

d.Individuals and Others

8) The FSA provides a one-time down payment loans to:

Select one:

a.All farmers.

b.Anyone that is purchasing a farm.

c.Farmers who are in their first 10 years of operation and own less than 30% of the average farm in the county.

d.All of the above.