40. All of the following will improve liquidity situation EXCEPT: a. Attract outside equity b. Refinance current debt c. Sell off some assets d. Pay down operating debt True/False section (41 through 50 41. T 42. T F For income statement, revenue should be recognized as soon as a c F Ga in or loss on sale of capital assets is the difference between sale price and book for sale, whether or not it is actually sold. acquire resour 43, T F Physical efficiency measures take into account the prices paid to 44. T F While the total net farm income over the entire life of the business would be cash-basis system and accrual-basis system, the accrual income statement is a better measure for any given year. 45. T F Marketable securities (stocks, bonds, etc.) are not considered liquid assets. 46. T F In budget analysis, the measures or ratios are compared against budgeted g 47. T F The information coming only from the balance sheet is enough for analyz 48. T F Financial analysis concentrates on the capital position of the business, in 9. T F For income statement, all expenses incurred in producing the revenue f . T F If a farm has zero liabilities, the rate of return on assets (ROA) and th objectives identified during the planning process. profitability solvency, liquidity, and changes in owner's equity period should be included. equity (ROE) will be different. 40. All of the following will improve liquidity situation EXCEPT: a. Attract outside equity b. Refinance current debt c. Sell off some assets d. Pay down operating debt True/False section (41 through 50 41. T 42. T F For income statement, revenue should be recognized as soon as a c F Ga in or loss on sale of capital assets is the difference between sale price and book for sale, whether or not it is actually sold. acquire resour 43, T F Physical efficiency measures take into account the prices paid to 44. T F While the total net farm income over the entire life of the business would be cash-basis system and accrual-basis system, the accrual income statement is a better measure for any given year. 45. T F Marketable securities (stocks, bonds, etc.) are not considered liquid assets. 46. T F In budget analysis, the measures or ratios are compared against budgeted g 47. T F The information coming only from the balance sheet is enough for analyz 48. T F Financial analysis concentrates on the capital position of the business, in 9. T F For income statement, all expenses incurred in producing the revenue f . T F If a farm has zero liabilities, the rate of return on assets (ROA) and th objectives identified during the planning process. profitability solvency, liquidity, and changes in owner's equity period should be included. equity (ROE) will be different
