NOUN TMA Solutions: AEC306- Farm Records and Accounting

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NOUN TMA Solutions: AEC306- Farm Records and Accounting

Postby Adele » Mon Jan 14, 2019 4:05 am

NOUN TMA Solutions: AEC306- Farm Records and Accounting

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Q1 ------------ is a type of asset which can be sold to raise finance.


Q2 -------------- means bringing together under central manage ment two or more of the links in the chain of production and marketing.

Vertical integration

Q3 The concepts of cash and share rent are sometimes combined in what is called

Standing ren t

Q4 As a result of the land tenure system most land is passed from one generation to another through


Q5 Which of these is not essential for successful family partnership?

Adequate household size of farm business.

Q6 -------------- is always increasing first at decreasing rate, later at increasing rate. The TC curve has the same shape as that of TVC


Q7 ------------- is the change in TC which results from one unit change in output

Marginal cos t

Q8 The importance of comparative advantage include the following except

It increases inflation

Q9 ------------- is the total variable cost divided by the total number of units of output

Average variable cost

Q10 --------------- states that individual or regions will tend to specialize in the production of those commodities for which their resources give them a relative or comparative advantage.

The law of compa rative advantage

Q11 ------------ is the income that could have been received if an input is used in its most profitable alternative use.

Opportunity cost.

Q12 A limited input (finance) should be allocated among alternative uses in such a way that the marginal value product of the last unit of input is equal in all uses. This is the law or principle of

Equi-marginal return s

Q13 In order to maximize profit, the farmer with limited input of finance should allocate the available finance (capital input) among the enterprises in accordance with the principle

Equi-marginal return s

Q14 Two enterprises are said to be supplementary if the

production of one enterprise can be increased without af fecting production of the other enterprise.

Q15 What happens when substitution ratio is less than the price ratio?

substitution should continue by moving downwards to the right on the P PC.

Q16 Two enterprises are said to be complementary if the

increase in production of one enterprise leads to increase in the production of the other enterprise.

Q17 The substitution ratio is called

the Marginal Rate of Product Tran sformation (MRPT).

Q18 The line joining the different combinations of the two enterprises that can be produced by the same amount of inputs is called

isocost line.

Q19 The isocost line and the isoquant line are at the point of tangency, where, input substitution ratio (MTRS)

is equ al to inverse of the price ratio.

Q20 Costs are at minimum point, where, input substitution ratio (MTRS)

is equal to inverse of the price ratio.

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Re: NOUN TMA Solutions: AEC306- Farm Records and Accounting

Postby Adele » Mon Jan 14, 2019 4:07 am

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Q21 The method where the double entry for each year􀳦??s depreciation charge is recorded in the asset account is called

old method

Q22 There -------- are methods of recording depreciation in the books


Q23 Which of these is an advantage of the declining balance method?

All items including addition, are grouped t ogether and depreciated at the same rate.

Q24 _______ is the simplest and the most widely used method of calculating depreciation.

The straight line method

Q25 Which of these is not an advantage of the straight line method of calculating depreciation ?

It requires a professional to compute or cal culate

Q26 is the wear and tear in the value of assets.


Q27 The aim of the trading account is to ascertain------ for a certain period.

the gross profit or gross loss

Q28 The objective of the Profit and loss appropriation account is to

show all dispositions, divisi ons and appropriations of the net profit and loss.

Q29 These are the limitations of the trial balance except

error of trial

Q30 The most popular method used in taking out the balances of accounts in order to extract an accurate trial is

by means of Balances

Q31 A trial balance can be constructed in A trial balance can be constructed in ------- ways


Q32 If the journal entries are error 􀳦?? free and were posted properly to the general ledger, the total of all the debit balances should

equal the total of all the cr edit balances.

Q33 Which of these is not a feature of the farm funds

Single entry accounting for both cash an d accrual books

Q34 farm business having between ----- of its assets financed is in an increasingly weaker position

40% and 60%

Q35 As a general rule, a farm business having between ----- of its assets financed is in a moderate positon

25% to 40%

Q36 As a general rule, a farm business having under----- of its assets financed is in a fairly strong position


Q37 ________ be defined as the list of accounts balances at a given point in time drawn up to test the arithmetical accuracy of accounting entries

The Trial balanc e

Q38 _______ is a statement of all cash transactions that took place with regard to the farm for the year that has just ended.

The Farm Income Accoun t

Q39 Subsidiary books are also called

books of prime entry

Q40 Subsiding books are the records of transactions entered in ----- books, mainly for the purpose of listing and classifying the various transactions as they occur and to avoid the risk of errors and omissions of direct entries in the ledger.


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Re: NOUN TMA Solutions: AEC306- Farm Records and Accounting

Postby Adele » Mon Jan 14, 2019 4:09 am

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Q41 A ledger account has ------ sides


Q42 The ledger is the ---- book of accounts.

princip al

Q43 All these are the objectives of double entry system except

Provide the necessary data to enable farmers give loan.

Q44 _______ entry system of bookkeeping is one whereby two (2) entries are made for every transaction.

The double

Q45 Which of these is not a recommended procedure in order to prepare the profit and Loss Account and a balance sheet from single entry book-keeping?

Accurate figures for creditors

Q46 Which of these is not an accompanied problem of the single entry system

Total sales and purchases of Goods

Q47 ______ common bookkeeping systems are used by businesses and other organizations


Q48 An accountant may prepare the income statement and balance sheet using the trial balances and ledgers prepared by the

book keepe r

Q49 A book keeper is usually responsible for writing the


Q50 Book keeper is also known as an

accounting clerk

Q51 The various books that are used for book keeping include the following except

minor books

Q52 The books that are used for book keeping fall naturally into how many Divisions?

thre e

Q53 ______ includes the design of accounting systems, preparation of financial statements, audits, cost studies, development of forecast, income tax work, computer applications to accounting information as an aid to making business decisions.


Q54 ______ may be defined as the science of recording transactions involving money or money􀳦??s worth in a regular and systematic manner in such a way that the books of accounting will show a true and fair state of the financial worth of a business readily at any point in time.

Book- keeping

Q55 ______ is the total value of the farm sales less the cost of purchased feeds, grain and market livestock

The value of farm production

Q56 _____ is a measure of the return to the networth in the business.

Return on Equity (ROE)

Q57 ______ is a measure of profitability measuring the rate of return that the farm business earns on its average asset base over the period.

Returns on Assets (ROA)

Q58 ______ shows the percentage of the farm income that is required to cover the operating expenses, excluding the principal and interest payments.

Expense/Revenue Ratio

Q59 Which these is not a measures of profitability?

Returns on production

Q60 ______ provides the answer to the question of how much profit the farm has made or is projected to make, in the business plan.

The Net farm inco me

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Re: NOUN TMA Solutions: AEC306- Farm Records and Accounting

Postby Adele » Mon Jan 14, 2019 4:11 am

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Q61 ______ refers to the 􀳦??bottom line􀳦?? profit that is earned (or projected to earn) by the business during the accounting period

Net farm income

Q62 ______ refers to the increase in the farm business networth from the beginning of the period to the end of the period as a result of the income earned by the business

Earned fina ncial progress

Q63 The measure of the business􀳦?? ability to meet its total debt obligations, if all the assets were to be sold is known as

debt to asset ratio

Q64 The measure of a business􀳦?? ability to meet current debt obligations as they come due without disrupting normal operations is called

current ra tio

Q65 The balance sheet provides an overall of the -------- farm business on a specific date.

financial snaps hot

Q66 --------- is also known as the financial statement or statement of networth

balance sheet

Q67 Which of these tools can not be used for financial analysis when accurate and complete farm records are available

break-even analysis

Q68 Developing and using a farm record keeping system will allow the farm manager to make more informed decisions affecting the

profitability of the farm

Q69 Computerized record keeping and analysis program have been accepted and used by

a number of f armers

Q70 Accurate records and resulting analyses help farmers make financial and ----------- Decisions


Q71 Once the information is posted in the computer software reports and analysis can be

created, changed and printed.

Q72 The real advantage of computerized record keeping is in

record ana lysis

Q73 Selecting a computerized record keeping program should be done on the basis of--------

features needed

Q74 ______ record keeping system entails the use of different software package in record keeping


Q75 ______ accounts are used to measure the performance of crop and livestock enterprises on the farm?


Q76 The following are some general principles which apply to all record keeping except

The record keeping system should notfit into the farm organization or framework.

Q77 The following are types of farm records except

loose account records

Q78 There are ------ basic types of farm records

thre e

Q79 Farm records can be defined as

systematic documentation of all ac tivities taking place in a farm enterprise over a given period of time.

Q80 _______ are statements of data concerning a specific subject which may be specified in physical, monetary, mathematical or statistical terms.


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View first unread post

Postby WarnerIsona » Mon Jan 14, 2019 9:37 pm

Ah... but unless im mistaken that takes you to the last post, rather than the last unread post.

im probably mistaken

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