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Description
Flashcards by Sandra Leak, updated more than 1 year ago
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Created by Sandra Leak
almost 8 years ago
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| Question | Answer |
| The Budget Before clicking on this card to see an explanation, consider what you already know? Do you feel confident in your knowledge of budget terminology? | A budget is what you set as your financial story, based on what income and expenses you "guesstimate" will occur during the upcoming year. This information is normally based on current status, trends and historical information. |
| The Forecast Do you have viable forecasts? | Once the year you have budgeted for gets underway, start tracking this against the budget. Your forecast then comprises actuals plus forecast. At each month end it’s good to compare your performance against the forecast to see if you’re on track. |
| Revenue In Can you identify some sources of revenue? These will differ depending on type of agribusiness. | Sources of revenue can be: sales of product sales of stock land leasing off-farm income (partners income) |
| Costs: Farm Inputs Can you explain this term? Do you know how this relates to the parity ratio? | The term Farm Inputs as it applies to the area of agriculture can be defined as: The resources that are used in farm production, such as chemicals, equipment, feed, seed, and energy. Most farm inputs are purchased (a change from the days when animals powered most operations), making production costs susceptible to non-farm economic conditions. Over time, prices of farm inputs have increased relative to commodity prices, creating what farmers describe as a cost-price squeeze. The relationship between prices paid for inputs compared to prices received for output is quantified in the parity ratio. |
| OPEX vs CAPEX Can you explain these two terms? | An operating expense, operating expenditure, operational expense, operational expenditure or OPEX is an ongoing cost for running a product, business, or system. Its counterpart, a capital expenditure (CAPEX), is the cost of developing or providing non-consumable parts for the product or system. |
| Net Debt What is the equation to calculate Net Debt? | Net debt shows a business's overall financial situation by subtracting the total value of a company's liabilities and debts from the total value of its cash, cash equivalents and other liquid assets, a process called netting. All the information necessary to determine a company's net debt can be found on its balance sheet. Net Debt = (Short-Term Debt + Long-Term Debt) - (Cash + Cash Equivalents) |
| How did you do? | If there are any specific terms you feel are relevant to this course, please add them to our Glossary. This is located in the ToolShed section for all students to access. |
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