Define farm records and farm accounts. (b) Give seven reasons for keeping such records.
Explanation
(a) Farm records are documents of all the activities pertaining to the farm business while farm accounts are statements of money spent and received for goods and services used in a farming business
(b) Seven reasons for keeping farm records are:
(i) For checking on costs and returns.
(ii) For comparing management efficiency over time.
(iii) it provides farm planning data to guide future management decisions.
(iv) For easy procurement of loans from banks
(v) For the purpose of proper tax assessment of the farm
(vi) It provides a history of what has happened on the farm for the period under consideration.
(vii) To know whether profit or loss is made
(viii) To keep a close check on whether of not things are going according to plan on the farm