AET and Financial Terminology Flashcards
Capital Item Useful Life
An example of breeding animals is usually 5-10 years, equipment 10 years and buildings usually have a have a 20-year useful life.
Beginning Inventory
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.
Depreciation Expense
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.
Non-Current Inventory (Non-Cash)
An asset that includes breeding animals, show tack, lawn mowers, barns, land, trailers and other high-value items.
Capital Item Usage
Ex. laptop in one year is 50% for breeding beef and 50% for a research project.
Current Inventory
Student has a poinsettia project and purchase $400 in plants, $100 in pots and soil, which gives the student a current inventory of $500.
Capital Item Salvage Value
Ex, laptop cost value of $800, but is estimated to be valued at $650 at the end of use.
AET Market Adjustment
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.
Cash Expense
Examples are inventory purchased for resale, feed, supplies, rent, and other cost needed for the project.
Cash Income
An example is selling a show animal, collecting rent from an equipment lease or collecting cash to fund a research project.
Capital Item Manager
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.
Non-Cash Transaction
An example is a student selling from his/her hay production project to one of their show animal projects.
Non-SAE Labor Exchange
An example is a student working in a family day care center for the expenses to support a production rabbit project.
SAE Labor Exchange
An example is working for a dairy business in exchange for feed of a dairy project.
Non-Cash Transfer
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.
Gift (Non-Cash)
student receiving a free set of flowers to arrange and sell as a floriculture project.
Used at Home (Non-Cash)
Ex. Student with a poultry project that sells their remaining chickens to family, but collects no cash or exchange for the sale.
Transfer to a Capital Item (Non-Cash)
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.
Beginning Inventory
Value the day the student started ag education
Assets
Current and Capital/Non-Current
Income/Expenses
Cash, gifts, non-cash, SAE labor exchange, Non-SAE labor exchange
Depreciation
Value of item lost over time.
Useful Life
How long a capital item retains value.
Salvage Value
At the end of an item’s defined useful life, the cash value.
