60. Net farm income for 2013 was how much? a. $77,053

b. $194,333

c. $254,333

d. cannot be determined from the information given

61. The beginning current ratio was? a. 0.87 c. 1.10 b. 0.93 d. 1.15

62. True or False: The level of output that maximizes profit is always less than the amount that is maximum production.

63. If a farm financial analysis is performed and the farmer decides she must increase asset turnover, which of the following is a way to address an exceptionally high value of invested assets and achieve a higher asset turnover rate:

a. Liquidate non-productive assets.

b. Change the debt structure to have less current liabilities. c. Concentrate on higher crop yields this year.

d. Lower farm fuel and utility bills.

64. Using a set of balance sheets with income statements that describe the years between the balance sheets we can address all of the following financial aspects EXCEPT:

a. Liquidity

b. Cash-Flow c. Solvency

d. Profitability

65. Which of the following is NOT a component of a Balance Sheet? a. Current Assets

b. Change in Inventory Values c. Long-term Liabilities

d. Net Worth

66. Which of the following is a measure of Solvency? a. Debt to Asset Ratio

b. Working Capital c. Current Ratio

d. Net Farm Income

67. True or False: A Balance Sheet is a financial snap-shot of the farm business while an income statement describes the time between balance sheets (usually the calendar year).

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68. You are asked to analyze the balance sheet of a farm. You find out from examining the balance sheet that the current ratio is 4.53. How would you classify this ratio?

a. poor c. good

b. fair d. cannot tell from given information

69. An increase in the number of non-farmers living in rural areas may cause:

a. farmland values to decrease

b. farmers to pay more attention to off-farm effects of their production practices c. less regulation of agricultural production practices

d. profit maximization to be the only criterion for adopting new technologies

70. If the marginal product (MP) is decreasing with additional input, value marginal product (VMP) will be

a. increasing

b. decreasing

c. constant

d. decreasing and equal to MP

71. True or False: Most farms in the US are incorporated.

72. In the short run,

a. total fixed costs are zero when there is no production

b. total variable costs are zero when there is no production c. total cost will remain constant as output is increased

c. total cost will decrease as output is increased

73. In the short run, production should be stopped whenever a. total revenue is less than total variable cost

b. total revenue is less than total cost

c. total revenue is less than total fixed cost

d. total revenue is greater than total fixed cost

74. True or False: There are both fixed and variable costs in the short run.

75. True or False: Average Fixed Cost is constant as output increases.

76. True or False: Weather is an important source of production risk for crop producers.

77. True or False: Even farmers with good risk-bearing ability may be risk avoiders.

78. True or False: Being self-insured by maintaining liquid financial reserves carries no cost to the operator, while buying insurance policies does.

79. True or False: Profit will increase any time more input is used.

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80. True or False: Maximum production is not the same level as maximum profit because of the law of diminishing returns.

81. The probability of a heifer calf is 48% and the value of a heifer calf is $475. The probability of a bull calf is 52% and the value of a bull calf is $55. (Assume no death loss or other factors you only need to use the values provided above.) The expected value of the calf is:

a. $259.25

b. $256.60

c. $55.00

d. $475.00

e. Both C. and D.

82. A written agreement by which an owner of property transfers title to someone for the benefit of beneficiaries is a

a. trust

b. partnership

c. corporation

d. sole proprietorship e. None of the above.

83. Livestock producers should be concerned about all of the following when deciding upon production practices to employ, except,

a. Consumer groups and possible reactions to practices

b. Possible revenue increases from production changes versus cost increases c. Popular press and media reaction to practices

d. Likelihood of public acceptance of certain practices in the future

e. No exceptions; they should be concerned about all of the above.

84. True or False: Regulations involving environmental issues on farms are likely to get more stringent in the future.

85. True or False: Purchased livestock can be depreciated but livestock raised at home cannot be depreciated.