Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABM 130 Final Exam Question 2 (3 points) Question 11 (3 points) Given the following information how much would you be willing to pay for

image text in transcribed

image text in transcribed
ABM 130 Final Exam Question 2 (3 points) Question 11 (3 points) Given the following information how much would you be willing to pay for these 100 In a double entry account system: acres of land? i. The land is forecasted to return $200/acre per year, ii. Use a 5% interest rate? a. Debits are on the left-hand side of an account Ob. Credits are on the right-hand side of the account Ja. $40 O c. Both A and B are correct Ob. $4,000 O d. Both A and B are incorrect c. $20,000 Od. $400,000 Question 12 (3 points) Oe. None of the above Which of the following are measure(s) of profitability? Question 3 (3 points) a. Asset Turnover Ratio There are two primary reasons why farm business managers need an understanding Ob. Rate of Return on Assets not belong? Oc. Rate of Return on Equity O d. All of the above a. For preparing income taxes b. For calculating replacement costs for assets Question 13 (3 points) O c. For calculating farm revenue If a farm business manager would like to increase their ROA they may try to: d. Neither a or c a. Increase quantity of output produced (higher yields) e. Neither b or c b. Reduce input usage (while holding output constant) Question 4 (3 points) O c. Sell (liquidate) unproductive assets One reason U.S. farms have become larger and fewer is: O d. All the above Question 14 (3 points) a. Lowering production costs/unit, by spreading fixed investment in technology over more units Roberta's nich third aunt once removed left her an inheritance of $100,000. If expected rate of return was 5%? Note: ranges given to account for rounding errors. b. Competition from foreign producers c. More labor used in agricultural production a. $78,000 to $79,000 d. Declining farm wage rates b. $146,300 to $147,300 O c. $127,500 to $128,500 Question 5 (3 points) Use the following information to answer this group of questions. A major advantage of cash accounting over accrual accounting is: Consider the purchase of a new beet processing machine for Schrute Farms. The specific information is: Purchase price = $350,000.00 a. A more accurate estimate of annual profit Purchase date = Jan 1, 2018 b. Income tax management Taxable years = 7 years O c. Always shows a higher profit MACRS Depreciation Yable O d. Can use double entry instead of single entry Table 7-2. 150% Declining Balance Method (Half-Year Convention) e. Cash accounting does not have an advantage over accrual accounting Year % 15.00% 10.71% 3.750% 25.0 25.50 19.13 Question 6 (3 points) DO NIA MIA WIN 17.85 15.03 6.677 16.08 225 6-177 One advantage of a single-entry cash accounting system over a double-entry accrual 8.33 12.25 5.285 system is: 12.25 6 13 4 888 *822 O a. It can be done on a computer Question 15 (3 points) O b. A current balance sheet is always available Which of the following is correct regarding economic depreciation of the new beet c. Non-cash transactions do not need to be entered processing machine? d. It is easier to enter transactions Total depreciation is $350,000 and the annual straight-line depreciation is e. All the above $50,000 $35.000 Total depreciation is $350,000 and the annual straight-line depreciation is Question 7 (3 points) Which of the following asset valuation methods would be preferred for farm Total depreciation is $300,000 and the annual straight-line depreciation is $30,000 buildings? Total depreciation is $300,000 and the annual straight-line depreciation is $42,857 a. Available net selling (or market) price ONone of the above b. Lesser of cost or market price c. Value at cost or reproduction value depreciated to current condition Question 16 (3 points) d. Capitalization of earning power How much tax depreciation can Schrute Farms deduct for the beet processing machine in year 3? Question 8 (3 points) Which of the following asset valuation methods works best to value land? $50,000 Oa. Available net selling (or market) price $52,605 O b. Lesser of cost or market price $54,475 O c. Value at cost or reproduction value depreciated to current condition $87,500 d. Capitalization of earning power Question 9 (3 points) Question 17 (3 points) Which of the following business paths for farms and ranch businesses is focused on What is the salvage value of the beet machine at the end of year 1 if 150% declining riving down production costs and thin profit margins? balance is used for economic depreciation? a. Low-volume, high-value $37,48 Ob. High-volume, low-value $52,500 c. Part-time farmers $297,500 O d. Specialty products and services $312,515 Question 10 (3 points) Which of the following statements are correct regarding SWOT analysis: to the firms and external; opportunities and threats are internal O b. SWOT analysis is used for strategic management. c. SWOT stands for strengths, weaknesses, opportunities, and threats O d. Both A and B are correct. e. Both B and C are correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

2nd edition

134730372, 134730370, 978-0134730370

More Books

Students also viewed these Accounting questions

Question

How easy is it to make your financial statements?

Answered: 1 week ago

Question

5. Give some examples of hidden knowledge.

Answered: 1 week ago