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

1 Comment
  1. It helps me a lot.

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