Farm Management

4. / The degree to which the liabilities of a business are backed up by assets; the relationship between debt and equity capital.
6. on assets / The value represented by net farm income from from operations, plus interest expense, minus, the opportunity cost of operator labor and management. It is usually expressed as a percentage of the average value of total assets.
7. worth statement / A summery of all the assets, liabilities and net worth of a busines. Also called a balance sheet
8. / An annual, noncash expense to recognize the amount by which an asset loses value due to use, age, and obsolescence. It also spreads the original cost of the asset over its useful life.

1. / Physical or financial property that has value and is owned by a business or individual
2. statement / A report that summaries the income and expenses and computes the resulting profit off a business over an accounting period.
3. liabilities / Liabilities normally paid within a year.
4. value / The market value of a depreciable asset at the time it will be sold or removed from service
5. / The ability of a business to meet its financial obligations as they come due
9. assets / An asset expected to last through more than one production cycle that can be used to produce other saleable assets or service.