principle of diminishing returns

added input = increased output, then decreased output

to put off to a later time; postpone

net worth statement, summary of financial situation at a specific point in time, comprised of assets and liabilities

factors of production

land, labor, capital, management

more accurate method of accounting, records transactions as they occur, not when cash is moved

total assets minus total liabilities, equity

resource owned by the farm used or sold within one year

transactions are recorded when cash is moved, simpler form of accouting

resource owned by a farm with a useful life over one year

debt owed by farm that must be paid within one year

schedule of expected returns and costs

resource used to produce a product

non current liability

portion of debt owed by farm not due within the year

loss of value of an asset over time due to wear and tear

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Farm Business Terms

20 termsStudBud Administration144 plays

A review of basic Farm Business Management vocabulary for the #FFA #CDE.

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
revocability
ability to meet or change written goals
ability to swap to the next best alternative
whether or not debt can be forgiven
whether or not a decision can be reversed
2
opportunity cost
income received when selling an asset
cost added by producing one more unit of product
benefit that could be received by the next best alternative
cost of buying an asset
3
market value
price received for an asset sold in a competitive setting
price received to rent out an asset
original price of an asset
loss of value of an asset over time due to wear and tear
4
principle of diminishing returns
added input = decreased output
added input = increased output, then decreased output
added input = decreased output, then increased output
added input = increased output
5
deferred
to advance or hurry
to take care of immediately
to put off to a later time; postpone
to ignore
6
balance sheet
net worth statement
summary of financial situation at a specific point in time
report that summarizes income and expenses
comprised of assets and liabilities
7
factors of production
land, labor, capital, management
land, labor, capital, entrepreneurship
land, management, capital, entrepreneurship
assets, labor, capital, liabilities
8
accrual accounting
more accurate method of accounting
easier method of accounting
measures transactions when cash is moved
records transactions as they occur, not when cash is moved
9
accounts receivable
costs that do not change with added inputs
money owed by a business
debt
money owed to a business
10
net worth
value of next best alternative
total assets minus total liabilities
cost added by producing one more unit of product
equity
11
current asset
debt owed by the farm that must be paid within one year
resource owned by the farm used or sold within one year
resource owned by the farm with a useful life over one year
portion of debt owed by the farm not due within the year
12
variable cost
does not change based on input
calculated without knowing input amounts
changes based on input used
cost that must be paid within one year
13
cash accounting
transactions are recorded as they occur
more accurate form of accounting
transactions are recorded when cash is moved
simpler form of accouting
14
non current asset
debt owed by farm that must be paid within one year
resource owned by a farm used or sold within one year
resource owned by a farm with a useful life over one year
portion of debt owed by farm not due within the year
15
current liability
resource owned by a farm with a useful life over one year
portion of debt owed by farm that not due within the year
debt owed by farm that must be paid within one year
resource owned by farm used or sold within one year
16
budget
list of money owed by a business
schedule of expected returns and costs
inventory of assets
money left over after debt has been paid
17
input
product created from resources
values placed on an income statement
values placed on a budget sheet
resource used to produce a product
18
non current liability
portion of debt owed by farm not due within the year
resource owned by a farm used or sold within one year
debt owed by farm that must be paid within one year
resource owned by a farm with a useful life over one year
19
depreciaton
principle owed on a loan
loss of value of an asset over time due to wear and tear
price received for an asset sold in a competitive setting
interest owed on a loan
20
accounts payable
money owed by a business
loss of an asset's value over time due to wear and tear
accounting system where cash transactions are recorded
money owed to a business

Farm Business Terms Flashcards | StudBud