All of the following are examples of items resulting in variable costs except:
Answer: depreciation.
Showing posts with label Business Management. Show all posts
Showing posts with label Business Management. Show all posts
Matthew will have some timber available to sell in December, 1987. His income for 1987 is going to be about $40,000 but his estimated income for 1988 is $20,000 because his wife plans to quit work to begin a family. With no significant changes in the tax law between 1987 and 1988, he will probably be better off to:
Matthew will have some timber available to sell in December, 1987. His income for 1987 is going to be about $40,000 but his estimated income for 1988 is $20,000 because his wife plans to quit work to begin a family. With no significant changes in the tax law between 1987 and 1988, he will probably be better off to:
Answer: defer the sale of the timber until 1988
Mr. Johnson harvested corn in October, 1986. He stored the corn and sold it in May, 1987. With the accounting method he uses, he did not report the value of the corn as income on his 1986 tax return but will report it as income in 1987. His accounting method must be
Mr. Johnson harvested corn in October, 1986. He stored the corn and sold it in May, 1987. With the accounting method he uses, he did not report the value of the corn as income on his 1986 tax return but will report it as income in 1987. His accounting method must be
Answer: the cash method.
How much will the yearly depreciation be if you use the straight line depreciation method for a computer system costing $3,500 with a seven year life?
How much will the yearly depreciation be if you use the straight line depreciation method for a computer system costing $3,500 with a seven year life?
Answer: $500
Magruder Farms Inc. presently has current liabilities in the amount of $10,000, intermediate liabilities of $50,000 and long term liabilities of $225,000. In order for the business to be considered solvent, total assets must be greater than ________.
Magruder Farms Inc. presently has current liabilities in the amount of $10,000, intermediate liabilities of $50,000 and long term liabilities of $225,000. In order for the business to be considered solvent, total assets must be greater than ________.
Answer: $285,000
The speculator is important in the futures market because he:
The speculator is important in the futures market because he:
Answer: accepts the price risk the hedger is seeking to avoid
Farm budgets differ from farm records in that:
Farm budgets differ from farm records in that:
Answer: records are a history of what has happened; budgets are a projection of what will happen.
Daryl purchased a tract of land and the owner agreed to finance the purchase. The loan was amortized over ten years but a clause in the contract called for the loan balance to come due at the end of five years. This particular type loan is called a ______ loan.
Daryl purchased a tract of land and the owner agreed to finance the purchase. The loan was amortized over ten years but a clause in the contract called for the loan balance to come due at the end of five years. This particular type loan is called a ______ loan.
Answer: balloon
When using published enterprise budgets, a producer should:
When using published enterprise budgets, a producer should:
Answer: modify the budgets to suit his situation.
"Depreciation is best defined as:
"Depreciation is best defined as:
Answer: an allowance for wear, tear, and obsolescence
A business owned and managed by one person is called a:
A business owned and managed by one person is called a:
Answer: sole proprietorship
Other things being equal, a decrease in the amount of an agricultural commodity offered for sale will result in:
Other things being equal, a decrease in the amount of an agricultural commodity offered for sale will result in:
Answer: a higher price
An appropriate use for long term credit is to:
An appropriate use for long term credit is to:
Answer: purchase land and buildings.
A lease between a tenant and a landlord should:
A lease between a tenant and a landlord should:
Answer: be in writing.
Which items are most readily converted into cash without loss?
Which items are most readily converted into cash without loss?
Answer: current assets
Which of the following items would most likely result in a loss for a vegetable producer who decides not to plant anything this year because of low prices?
Which of the following items would most likely result in a loss for a vegetable producer who decides not to plant anything this year because of low prices?
Answer: depreciation
Pam said, "I paid $12,000 for this truck two years ago and would like to sell it for $10,000, but I know it has ________ more than that."
Pam said, "I paid $12,000 for this truck two years ago and would like to sell it for $10,000, but I know it has ________ more than that."
Answer: depreciated
Good reasons to borrow money include:
Good reasons to borrow money include:
Answer: increased returns are greater than the cost of borrowing money
Hedgers and speculators in the futures market are similar in that they
Hedgers and speculators in the futures market are similar in that they
Answer: are both interested in making a profit
If all other factors remain the same and the supply of a product goes up, then the price of that product will probably:
If all other factors remain the same and the supply of a product goes up, then the price of that product will probably:
Answer: fall
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