1. Which of the following best describes a balance sheet?
   1. Changes in Assets, Liabilities, and Equity over the last accounting period
   2. Assets, Liabilities, and Equity at a point in time

1. Which of the following assets would have the same value for both the cost column and the FMV column?
   1. Land
   2. Breeding Livestock
   3. Machinery
   4. Prepaid Expenses

1. Current liabilities are amounts owed which must be paid in full within one year from the date of the Balance Sheet.
   1. True
   2. False

1. When analyzing the financial statements using ratios, which set of information is used?
   1. Cash Basis Financial Statements, Cost Column for Balance Sheet
   2. Cash Basis Financial Statements, FMV Column for Balance Sheet
   3. Accrual Adjusted Financial Statements, Cost Column for Balance Sheet
   4. Accrual Adjusted Financial Statements, FMV Column for Balance Sheet

1. Why is ratio analysis important?

1. Liquidity ratios and calculations use what information from the Balance Sheet?
   1. Total Assets and Total Liabilities
   2. Total Assets, Total Liabilities, and Equity
   3. Current Assets and Current Liabilities
   4. NonCurrent Assets and NonCurrent Liabilities

1. Critical Thinking: If a farm has working capital greater than $0, its current ratio will be
   1. Greater than one.
   2. Equal to one.
   3. Less than one.
   4. Zero.