1. An example of a Cash Outflow that is NOT an Expense for this year would be:

1. Buying and paying for feed and using it this year
2. Buying and using fertilizer this year but not paying for it until next year
3. Using a Debit card instead of a check
4. Paying off principle on a loan

2. Which of the following is NOT one of the "C"'s of lending

1. Character
2. Collateral
3. Coop Stock
4. Conditions

3. How could a farm consistently have high (strong) liquidity, but yet always struggle with profitability?

1. Inherrited wealth and/or off-farm income
2. They are growing fast
3. They just dont have any debt
4. They are using accrual accounting which always biases profitability downward

4. From one time period to the next the only thing that happened is that a farm took $40,000.00 out of the checking account and used it to pay off principle on a tractor loan. Which of the following are true from period 1 to period 2?

1. Net Worth went up
2. Net Worth went down
3. Net Worth is unchanged
4. Profits went down