AET and Financial Terminology

Question 1

Capital Item Useful Life

Answer 1

An example of breeding animals is usually 5-10 years, equipment 10 years and buildings usually have a have a 20-year useful life.

Question 2

Beginning Inventory

Answer 2

Items for a show animal project such as the animal, feed or supplies, capital items and cash-on hand prior to the first agricultural education class.

Question 3

Depreciation Expense

Answer 3

An example is a laptop costing $800, salvage $650 and useful life of 10yrs. = $15 annual depreciation cost: ($800-$650) / 10 = $15 cost per year.

Question 4

Non-Current Inventory (Non-Cash)

Answer 4

An asset that includes breeding animals, show tack, lawn mowers, barns, land, trailers and other high-value items.

Question 5

Capital Item Usage

Answer 5

Ex. laptop in one year is 50% for breeding beef and 50% for a research project.

Question 6

Current Inventory

Answer 6

Student has a poinsettia project and purchase $400 in plants, $100 in pots and soil, which gives the student a current inventory of $500.

Question 7

Capital Item Salvage Value

Answer 7

Ex, laptop cost value of $800, but is estimated to be valued at $650 at the end of use.

Question 8

AET Market Adjustment

Answer 8

An example is on December 31st, a breeding operation with offspring still on females has an AET cost value of $500, but the market value is more accurate at $1500.

Question 9

Cash Expense

Answer 9

Examples are inventory purchased for resale, feed, supplies, rent, and other cost needed for the project.

Question 10

Cash Income

Answer 10

An example is selling a show animal, collecting rent from an equipment lease or collecting cash to fund a research project.

Question 11

Capital Item Manager

Answer 11

Examples are showing the usage or selling items such as tractors, show box, stall equipment and other related items that are used to support several projects across several years.

Question 12

Non-Cash Transaction

Answer 12

An example is a student selling from his/her hay production project to one of their show animal projects.

Question 13

Non-SAE Labor Exchange

Answer 13

An example is a student working in a family day care center for the expenses to support a production rabbit project.

Question 14

SAE Labor Exchange

Answer 14

An example is working for a dairy business in exchange for feed of a dairy project.

Question 15

Non-Cash Transfer

Answer 15

An example is raising show pigs from a sow operation (income) and transferring new prospects into a new show pig project (expense) for the current year.

Question 16

Gift (Non-Cash)

Answer 16

student receiving a free set of flowers to arrange and sell as a floriculture project.

Question 17

Used at Home (Non-Cash)

Answer 17

Ex. Student with a poultry project that sells their remaining chickens to family, but collects no cash or exchange for the sale.

Question 18

Transfer to a Capital Item (Non-Cash)

Answer 18

An example is having a project for a show breeding goat that is not sold, but rather retained as a breeding female in a student’s breeding goat SAE.

Question 19

Beginning Inventory

Answer 19

Value the day the student started ag education

Question 20

Assets

Answer 20

Current and Capital/Non-Current

Question 21

Income/Expenses

Answer 21

Cash, gifts, non-cash, SAE labor exchange, Non-SAE labor exchange

Question 22

Depreciation

Answer 22

Value of item lost over time.

Question 23

Useful Life

Answer 23

How long a capital item retains value.

Question 24

Salvage Value

Answer 24

At the end of an item’s defined useful life, the cash value.