LEA Reviewer - Farm Management Exam

Question of
Ratio showing the capacity of the enterprise to repay short term of loans at short notice.
- current
- fixed
- gross
- output
Question of
The market value of the output of an activity over some accounting period (usually a year), whether that output is sold or not.
- net income
- gross margin
- gross income
- fixed income
Question of
Anything of value in the possession of the farm or claims of the farm on anything of the value in the possession of others may be classified as current assets or fixed assets
- liabilities
- assets
- net worth
- credit
Question of
Statements of projected cash payments and cash receipts associated with a particular plan (usually for a farm, but also for an activity, enterprise or enterprise
- cash flow budget
- costs and returns
- gross margin
- net cash budget
Question of
Calculation of the future value of a present sum by application of the relevant rate of interest.
- discounting
- compounding
- rediscounting
- accounting
Question of
In terms of opportunity cost, is the benefit given up through having investment capital tied up in an activity or group of activities for a period of time. It is often specified as the interest rate paid for borrowed funds or actual amount on interest paid.
- cost of capital
- imputed value
- shadow price
Question of
The distribution of crops over the time and space on a farm during one production cycle.
- cropping pattern
- seasonal pattern
- calendar of operation
Question of
Total physical working assets (compromising assets such as harvested and growing crops, non-breeding livestock and stocks and materials) and liquid assets such as cash in hand or at the bank, prepayments and sundry debtors.
- current assets
- fixed assets
- crops in hand
- none of the above
Question of
Claims, which may have to be met within a short period of time, usually not longer than a year
- current liabilities
- fixed liabilities
- loans
- none of the above
Question of
The cost of wear and tear and obsolescence associated with of implements, machinery and structures over time.
- depreciation
- appreciation
- deterioration
- none of the above
Question of
Those cost which could be allocated to specific activity or enterprise
- direct cost
- variable cost
- fixed cost
- none of the above
Question of
Costs that are related to the size or scale of activity
- variable cost
- fixed cost
- non-cash cost
- none of the above
Question of
Cost such as the cost of depreciation of a milking parlor is attributable to the milk enterprise
- variable cost
- fixed cost
- non-cash cost
- none of the above
Question of
Calculation of the present value of a future sum by application of the relevant rate of interest
- discounting
- compounding
- rediscounting
- accounting
Question of
Total assets less total liabilities, which may be segregated into farm and non-farm equity it represents the farmer’s contribution of capital to the economic unit.
- equity
- equity capital
- net worth
- all of the choices
Question of
Inputs used in production process in general terms this can be classified as land, labor and capital and management is not usually included as it can be readily measured and land, labor and capital can further be divided into different types.
- factors of production
- variable costs
- cost of production
- none of the choices
Question of
Net farm income plus other non-farm income of the family, it represents the total income available to the farm family for all purposes
- family earnings
- farm income
- family income
Question of
A detailed list of activities that will be carried out on the farm over a specified period of time.
- farm plan
- farm inventory
- budget
- none of the choices
Question of
Data collection from a sample of farms from specified population.
- complete enumeration
- farm survey
- interview
- farm records
Question of
Those costs which are not variable cost
- fixed cost
- cash costs
- opportunity cost
- none of the choices
Question of
The value of total output (not of any purchases of products is produced) over a specified period (usually one year) whether the output is sold or not and including inventory charges.
- gross income
- gross output
- gross sales
- none of the choices
Question of
Factor of production, which should be taken into account in farm financial analysis but which involved no money transaction and thus are not recorded in the farm accounting record (if kept).
- management
- labor
- capital
- none of the choices
Question of
In accounting terminology, a list of all the assets owned giving their description and value at a particular point of time in management terms, often used to describe a stock of goods kept in case of future need, e.g. spare parts for machinery.
- assets
- inventory
- inputs
- resources
Question of
Unit of labor input or requirements usually assumed to represent the work accomplished by an adult in a normal workday or a standardized workday of eight hours.
- labor day
- work day
- man-hour
- none of the choices
Question of
Physical law that applies to all production processes so that the marginal product of a variable factor eventually declines as more factor is used relative to a given amount of fixed factors
- law of supply and demand
- law of diminishing returns
- law of comparative advantage
- none of the choices
Question of
Cost representing the increase in variable cost, which would occur if one or more unit of output, was to be produced.
- marginal cost
- fixed cost
- variable cost
- opportunity cost
Question of
The marginal product of an input is the change in output arising from using another additional unit of input
- marginal product
- average product
- none of the choices
Question of
Budgeting, which relates to only part of the farm and assess the gains and losses and thus, the net benefit of changing that part of the farm’s organization.
- partial budget
- complete budget
- farm budget
Question of
The economic principle implying that various crops and livestock should be produced in those areas where the physical and other resources are best suited to their production under prevailing price relationship.
- law of comparative advantage
- law of supply and demand
- principle of marginality
- none of the choices
Question of
The economic principle that a farmer should trade off competing goals so long as the goal of satisfaction from the goal receiving increased emphasis is greater than the loss in satisfaction incurred by decreasing emphasis in the other goal or goals.
- principle of marginality
- principle of diminishing returns
- principle of substitution
- none of the above
Question of
The economic principle that one thing should be substituted for another only if the net benefit of making such a change is positive.
- principle of substitution
- principle of comparative advantage
- principle of opportunity cost
- none of the choices
Question of
The quantitative relationship between variable inputs and outputs some production processes with a special level of fixed inputs
- cost function
- demand function
- physical input function
- none of the choices
Question of
The amount of output per unit of input expressed in physical or valuable terms
- productivity
- marginality
- cost of effectiveness
- none of the choices
Question of
The ratio of net income from an invest to the market value of the investment
- return to capital
- return on investment
- marginal returns
- none of the choices
Question of
Law of the diminishing return is embodied by the
- Total Product curve
- The production surface
- The average product
- None of the choices

LEA Reviewer – Farm Management Exam

Ratio showing the capacity of the enterprise to repay short term of loans at short notice.

The market value of the output of an activity over some accounting period (usually a year), whether that output is sold or not.

Anything of value in the possession of the farm or claims of the farm on anything of the value in the possession of others may be classified as current assets or fixed assets

Statements of projected cash payments and cash receipts associated with a particular plan (usually for a farm, but also for an activity, enterprise or enterprise

Calculation of the future value of a present sum by application of the relevant rate of interest.

In terms of opportunity cost, is the benefit given up through having investment capital tied up in an activity or group of activities for a period of time. It is often specified as the interest rate paid for borrowed funds or actual amount on interest paid.

The distribution of crops over the time and space on a farm during one production cycle.

Total physical working assets (compromising assets such as harvested and growing crops, non-breeding livestock and stocks and materials) and liquid assets such as cash in hand or at the bank, prepayments and sundry debtors.

Claims, which may have to be met within a short period of time, usually not longer than a year

The cost of wear and tear and obsolescence associated with of implements, machinery and structures over time.

Those cost which could be allocated to specific activity or enterprise

Costs that are related to the size or scale of activity

Cost such as the cost of depreciation of a milking parlor is attributable to the milk enterprise

Calculation of the present value of a future sum by application of the relevant rate of interest

Total assets less total liabilities, which may be segregated into farm and non-farm equity it represents the farmer’s contribution of capital to the economic unit.

Inputs used in production process in general terms this can be classified as land, labor and capital and management is not usually included as it can be readily measured and land, labor and capital can further be divided into different types.

Net farm income plus other non-farm income of the family, it represents the total income available to the farm family for all purposes

A detailed list of activities that will be carried out on the farm over a specified period of time.

Data collection from a sample of farms from specified population.

Those costs which are not variable cost

The value of total output (not of any purchases of products is produced) over a specified period (usually one year) whether the output is sold or not and including inventory charges.

Factor of production, which should be taken into account in farm financial analysis but which involved no money transaction and thus are not recorded in the farm accounting record (if kept).

In accounting terminology, a list of all the assets owned giving their description and value at a particular point of time in management terms, often used to describe a stock of goods kept in case of future need, e.g. spare parts for machinery.

Unit of labor input or requirements usually assumed to represent the work accomplished by an adult in a normal workday or a standardized workday of eight hours.

Physical law that applies to all production processes so that the marginal product of a variable factor eventually declines as more factor is used relative to a given amount of fixed factors

Cost representing the increase in variable cost, which would occur if one or more unit of output, was to be produced.

The marginal product of an input is the change in output arising from using another additional unit of input

Budgeting, which relates to only part of the farm and assess the gains and losses and thus, the net benefit of changing that part of the farm’s organization.

The economic principle implying that various crops and livestock should be produced in those areas where the physical and other resources are best suited to their production under prevailing price relationship.

The economic principle that a farmer should trade off competing goals so long as the goal of satisfaction from the goal receiving increased emphasis is greater than the loss in satisfaction incurred by decreasing emphasis in the other goal or goals.

The economic principle that one thing should be substituted for another only if the net benefit of making such a change is positive.

The quantitative relationship between variable inputs and outputs some production processes with a special level of fixed inputs

The amount of output per unit of input expressed in physical or valuable terms

The ratio of net income from an invest to the market value of the investment

Law of the diminishing return is embodied by the

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LEA Reviewer – Farm Management Exam

Ratio showing the capacity of the enterprise to repay short term of loans at short notice.

The market value of the output of an activity over some accounting period (usually a year), whether that output is sold or not.

Anything of value in the possession of the farm or claims of the farm on anything of the value in the possession of others may be classified as current assets or fixed assets

Statements of projected cash payments and cash receipts associated with a particular plan (usually for a farm, but also for an activity, enterprise or enterprise

Calculation of the future value of a present sum by application of the relevant rate of interest.

In terms of opportunity cost, is the benefit given up through having investment capital tied up in an activity or group of activities for a period of time. It is often specified as the interest rate paid for borrowed funds or actual amount on interest paid.

The distribution of crops over the time and space on a farm during one production cycle.

Total physical working assets (compromising assets such as harvested and growing crops, non-breeding livestock and stocks and materials) and liquid assets such as cash in hand or at the bank, prepayments and sundry debtors.

Claims, which may have to be met within a short period of time, usually not longer than a year

The cost of wear and tear and obsolescence associated with of implements, machinery and structures over time.

Those cost which could be allocated to specific activity or enterprise

Costs that are related to the size or scale of activity

Cost such as the cost of depreciation of a milking parlor is attributable to the milk enterprise

Calculation of the present value of a future sum by application of the relevant rate of interest

Total assets less total liabilities, which may be segregated into farm and non-farm equity it represents the farmer’s contribution of capital to the economic unit.

Inputs used in production process in general terms this can be classified as land, labor and capital and management is not usually included as it can be readily measured and land, labor and capital can further be divided into different types.

Net farm income plus other non-farm income of the family, it represents the total income available to the farm family for all purposes

A detailed list of activities that will be carried out on the farm over a specified period of time.

Data collection from a sample of farms from specified population.

Those costs which are not variable cost

The value of total output (not of any purchases of products is produced) over a specified period (usually one year) whether the output is sold or not and including inventory charges.

Factor of production, which should be taken into account in farm financial analysis but which involved no money transaction and thus are not recorded in the farm accounting record (if kept).

In accounting terminology, a list of all the assets owned giving their description and value at a particular point of time in management terms, often used to describe a stock of goods kept in case of future need, e.g. spare parts for machinery.

Unit of labor input or requirements usually assumed to represent the work accomplished by an adult in a normal workday or a standardized workday of eight hours.

Physical law that applies to all production processes so that the marginal product of a variable factor eventually declines as more factor is used relative to a given amount of fixed factors

Cost representing the increase in variable cost, which would occur if one or more unit of output, was to be produced.

The marginal product of an input is the change in output arising from using another additional unit of input

Budgeting, which relates to only part of the farm and assess the gains and losses and thus, the net benefit of changing that part of the farm’s organization.

The economic principle implying that various crops and livestock should be produced in those areas where the physical and other resources are best suited to their production under prevailing price relationship.

The economic principle that a farmer should trade off competing goals so long as the goal of satisfaction from the goal receiving increased emphasis is greater than the loss in satisfaction incurred by decreasing emphasis in the other goal or goals.

The economic principle that one thing should be substituted for another only if the net benefit of making such a change is positive.

The quantitative relationship between variable inputs and outputs some production processes with a special level of fixed inputs

The amount of output per unit of input expressed in physical or valuable terms

The ratio of net income from an invest to the market value of the investment

Law of the diminishing return is embodied by the

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