FBM

Question 1

Average Agricultural Area Utilised (AAU)

Answer 1

Combined area under crops, silage, hay, pasture and rough grazing land in use

Question 2

Standard Output of an agri product

Answer 2

The average monetary value of the agri output at farm gate prices

Question 3

Farm Family Income (FFI)

Answer 3

Return from farming for farm family labour, land and cattle

Question 4

Avg Farm Incomes 2023

Answer 4

Dairy - €49,432
Tillage - €21,399
Cattle - €7,425 to €14,735

Question 5

National Average FFI 2023?

Answer 5

€19,925

Question 6

National Average FFI 2022?

Answer 6

Just under €45,000

Question 7

Contribution of Direct Payments to FFI 2023:

Answer 7

Cattle rearing – 231%
Dairy - 44%
Sheep - 161%
Tillage – 154%

Question 8

Types of decisions?

Answer 8

Strategic – long term eg. purchasing land
Tactical – day-to-day decisions eg. choice of concentrate feeding levels

Question 9

Liquidity definition?

Answer 9

Ability to pay debts as they fall due

Question 10

Solvency definition?

Answer 10

Ability to pay long term liabilities/obligations when they fall due

Question 11

Repayment capacity definition?

Answer 11

Ability to generate enough funds to make debt payments on intermediate and long term loans

Question 12

Contra accounts

Answer 12

Where one side can pay the other a balancing amount (farmer owes supplier, but supplier owes farmer)

Question 13

Trade Debtors

Answer 13

(Accounts Receivable) accounts owed to the business at end of financial year

Question 14

Trade Creditors

Answer 14

(Accounts Payable) accounts owed by the business at end of financial year

Question 15

Stock valuations for cattle, sheep, and harvested crops

Answer 15

Cattle 60% of MV
Sheep 75% of MV
Harvested crops 75% of MV

Question 16

Bad Debt

Answer 16

Where a debtor is not recoverable

Question 17

Net Worth

Answer 17

Net Worth/Capital = Assets - Liabilities
or
Assets = Liabilities + Capital

Question 18

Capital

Answer 18

The owner’s investment in the business (so capital = net worth)

Question 19

Profitability definition?

Answer 19

The ability of a business to make a profit

Question 20

Efficiency definition?

Answer 20

How efficiently the business uses its resources

Question 21

Gearing definition?

Answer 21

Represents the level of debt compared to level of equity in the business

Question 22

Farm debt = ?

Answer 22

Farm debt = Long term loans + Short term debt

Question 23

Current ratio

Answer 23

(Current assets)/(Current liabilities) Expressed as :

Question 24

Acid test ratio/Quick Ratio

Answer 24

(Current assets-Closing stock)/(Current liabilities)
Expressed as :

Question 25

Gross Profit Ratio/Gross Profit Margin Ratio

Answer 25

(Gross profit)/(Sales revenue) x 100
= __%

Question 26

Return on farm assets/capital employed

Answer 26

(Net Profit+Interest)/(Total assets-Current liabilities) x 100 = __%

Question 27

Fixed Asset Turnover Rate/Revenue to Fixed (Non-Current) Assets

Answer 27

Revenue/(Fixed assets) = ____ times

Question 28

Asset Turnover Rate

Answer 28

Revenue/(Total assets-Current liabilities) = ___ times

Question 29

Operating Expense Ratio

Answer 29

(Expenses-Depreciation)/Revenue x 100 = __%

Question 30

Debt to Asset %

Answer 30

(Farm debt)/(Total assets) x 100= ___%

Question 31

Net Worth %

Answer 31

(Net Worth(Cap @31Dec))/(Total assets) x 100 = ___%

Question 32

Debt to Equity %

Answer 32

(Farm Debt (Fixed Liabilities))/(Total farm equity(Capital @31 Dec)) x 100
= ___%

Question 33

Debt to Total Capital % (Gearing Ratio)

Answer 33

(Total farm debt)/(Total farm debt+equity) x 100 = ___%

Question 34

Net Margin %

Answer 34

(Net Profit + Interest)/(Sales Revenue) x 100 = ___%

Question 35

Accounts Receivable (Debtor) Days

Answer 35

(Debtors)/(Sales x Revenue) x 365 days

Question 36

Accounts Payable (Creditor) Days

Answer 36

(Creditor)/(Purchases) x 365 days

Question 37

Stock (inventory) Turnover Ratio

Answer 37

(Cost of Sales)/(Average Stock)