TRUE/FALSE (30 points, 15 questions, 2 pts each) 41. True or False: An Income Statement is a financial snap-shot of the farm business while a Balance Sheet describes the time between income statements (usually the calendar year). a. True b. False 42. True or False: A farm business can show a loss (negative profit) but still have positive cash flows. a. True b. False 43. True or False: A $5,000 tax deduction is preferred to a $5,000 tax credit. a. True b. False 44. True or False: Net farm income from operations is always less than net farm income. a. True b. False 45. True or False: If your employer pays you an hourly wage of $20/hour then it costs the company $20/hour to have you as an employee. a. True b. False 46. True or False: The process of making decisions about the allocation of scarce resources in agricultural production for the purpose of meeting certain management goals, is a good definition of Farm Management. a. True b. False 47. True or False: Given the basic accounting equation of Owner's Equity = Assets - Liabilities, a business manager would be most interested in seeing his/her Owner's Equity increasing over time. a. True b. False Page 11 of 20