Commission on Higher Education

Region V
Masbate Polytechnic and Development College, Inc.
Baleno, Masbate
BACHELOR OF AGRICULTURAL TECHNOLOGY (BAT)-LADDERIZED

Name: ______________________________________ Score:____________

MIDTERM EXAMINATION IN FARM BUSINESS MANAGEMENT

AGRITECH 112
Test I. Multiple Choice. Choose and encircle the letter of the correct answer. NOTE! Erasures means wrong

1. According to them, Farm Management is “an art of organization and operation of the farm successfully as measured
by the test of profitableness”.
a. Andrew Boss, H.C.Taylor and L.C. Gray
b. G.F. Warner and J.N. Effersen
c. L.A. Moorehouse and W.J. Spillman
d. None of the above
2. It is is a science that deals with the organization and operation of a farm as a firm from the point of view of
continuous maximum profit consistent with the family welfare of the farmer.
a. Farmers
b. Farm Management
c. Farming
d. Economist
3. They considered farm management “as a science of organization and operation of the farm enterprises for the
purpose of securing the maximum profit on a continuous basis”.
a. Andrew Boss, H.C.Taylor and L.C. Gray
b. G.F. Warner and J.N. Effersen
c. L.A. Moorehouse and W.J. Spillman
d. None of the above
4. They defined farm management “as a study of the business phase of farming”.
a. Andrew Boss, H.C.Taylor and L.C. Gray
b. G.F. Warner and J.N. Effersen
c. L.A. Moorehouse and W.J. Spillman
d. None of the above
5. What will happen if Incorrect judgement and decisions will be made by the farm managers?
a. It will be a successful operations
b. It will result to failure of execution and will eventually turns to economic loss
c. It will cause to uplift the economic condition of the farm
d. None of the above will happen
6. The farm management decisions can be broadly categorized into two ways.
a. True
b. False
c. Maybe
d. Not sure
7. This refers to the revenues of the farm for the past year or accounting period (which could also be a month or
quarter).
a. Sales
b. Cost of Goods Sold
c. Gross profit (margin)
d. Operating expenses
8. cost of the items that have been resold. This is the direct expense of the items you sold. If
a. Sales
b. Cost of Goods Sold
c. Gross profit (margin)
d. Operating expenses
9. the expenses associated with producing and selling your product, as well as generally managing the operations of
your business.
a. Sales
b. Cost of Goods Sold
c. Gross profit (margin)
d. Operating expenses
 10. This is the amount of money available to cover expenses and still have something left for profit.
a. Sales
b. Cost of Goods Sold
c. Gross profit (margin)
d. Operating expenses
11. The accounting esquation is
a. Assets + Liabilities= Owner’s Equity
b. Assets= Liabilities +Owner’s Equity
c. Assets- Liabilities + Owner’s Equity
d. NONE OF THE ABOVE
12. Assets are simply defined as
a. What you have
b. What you owe
c. Whay you own
d. What you desire
13. Liabilities are simply as what business/farm
a. Have
b. Owe
c. Own
d. Desire
14. This is the financial statements were lists your assets, liabilities and equity can be found.
a. Income Statement
b. Balance Sheet
c. Statement of Cash Flow
d. Statement of Account
15. This financial Statement summarizes the sources and uses of funds over a given period of time.
a. Income Statement
b. Balance Sheet
c. Statement of Cash Flow
d. Statement of Account
Test II. Identify what is being asked. Choose the correct word or phrase the the box below. Write your answer in the
line provided before each number. NOTE! Erasures means wrong
Cash and Accrual Current Assets Inventory Report Liquidity
Cash Accounting Non-Current Assets Liquidity and Solvency
Accrual Accounting Solvency Income Statement
______________________ 16. These are two methods of Accounting for tracking revenue and expenses.
_______________________17. Revenue is recorded when you receive the cash, and expenses recorded when the cash
leaves your bank account
_______________________18. Revenue is recorded when the product is delivered (and the revenue is earned) or the
expense is incurred.
________________________19. The more liquid assets, which will be either used up or sold within the next year as part of
normal business activities.
________________________20. On a farm or ranch, these assets include primarily machinery and equipment, breeding
livestock, fences and corrals, buildings, and land.
________________________21. This Financial Statement presents a summary of everything you earn through the course of
your business.
________________________22. It tracks the quantity and value of crops and livestock on hand by recording purchases,
sales, births, deaths, amounts harvested, and amounts fed.
_______________________23. The financial position of a business at a point in time is measured primarily through the use
of two concepts.
_______________________24. This measures the liabilities of the business relative to the amount of owner equity invested
in the business.
_______________________25. This measures the ability of the business to meet financial obligations as they come due
without disrupting the normal operations of the business.
Test III. Place an “gagaraduate ako” under the column(s) to indicate whether each business event is an operating,
investment, or financing activity. NOTE! Erasures means wrong

Events Operating Investment Financing

26. Pay cash for tractor repairs ___________ ___________ ___________
27. Borrow 40,000 ___________ ___________ ___________
28. Pay interest on the loan ___________ ___________ ___________
29. Charge 12,000 of feed ___________ ___________ ___________
30. Equipment depreciates ___________ ___________ ___________
31. Sell 35,000 of corn ___________ ___________ ___________
32. Purchase pickup ___________ ___________ ___________
33. Pay principal on a loan ___________ ___________ ___________
34. Pay Employees salary ___________ ___________ ___________
35. Loan from Cooperative ___________ ___________ ___________
TEST IV. Answer the following question. 15 points.
1. What are the steps in Decision Making? You can answer by word of by showing through a flow chart.

Prepared by:

ROBELYN F. VERANO
Subject Instructor