Financial Planning: Budgeting & Farm Evaluation is one of 9 topics in the Grade 12 Agricultural Management Practices CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. What is a budget?
A financial plan that estimates expected income and expenses over a specific future period
A record of a farm's past performance only
A list of farm workers and their roles
A method of setting agricultural product prices
Answer: A financial plan that estimates expected income and expenses over a specific future period — A budget is a financial plan that estimates expected income and expenses over a specific future period.
Easy
2. What does a cash flow budget project?
The timing of actual cash inflows and outflows month by month or period by period across the year
Only the total annual profit of the whole farm
Only the price at which products will be sold
Only the veld carrying capacity of the farm
Answer: The timing of actual cash inflows and outflows month by month or period by period across the year — A cash flow budget projects the timing of actual cash inflows and outflows month by month or period by period across the year.
Medium
3. Name the type of budget that focuses on a single specific enterprise within the farm, such as just the maize crop.
Answer: enterprise budget — An enterprise budget focuses on a single specific enterprise within the farm, projecting that enterprise's expected income, direct costs and profitability separately.
