Ag Decision Maker Activity
Net Income Statements
File C3-25
Name ________________________
Answer the following questions using the information found in File C3-25.
1. Which part of the statement of cash flows is also found in the net income
statement?
a. cash income and expenses
b. new loans received and principal payments made
c. purchases and sales of capital assets
d. nonfarm income and expenditures
2. An accrual net farm income statement shows gross farm revenue based on:
a. cash sales realized during the accounting period
b. the value of farm products and services produced during the accounting
period
3. The net income statement summarizes the income and expenses from a farm
business that occur:
a. at a point in time
b. over a one year time period
c. over any period the manager wishes to analyze
4. For purposes of the net income statement, breeding livestock can be treated
the same as:
a. market livestock
b. depreciable assets
c. either one, but not both
5. The percent of their net worth that producers are willing to risk will depend on
their family situation and stage of life.
a. True
b. False
. . . and justice for all
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gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.)
Many materials can be made available in alternative formats for ADA clients. To file a complaint of discrimination, write USDA, Office of Civil
Rights, Room 326-W, Whitten Building, 14th and Independence Avenue, SW, Washington, DC 20250-9410 or call 202-720-5964.
Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture.
Cathann A. Kress, director, Cooperative Extension Service, Iowa State University of Science and Technology, Ames, Iowa.