Theory question 110
Farm Management and Records(a) Define farm records and farm accounts.
(b) Give seven reasons for keeping such records.
Show the model answer
Model answer
(a) Farm records are written accounts of activities, inputs and outputs on a farm (e.g. diary, inventory, production records); farm accounts are records of money received and spent (sales, purchases, profit and loss, balance sheet)
(b) Any seven: show profit or loss; help planning and decision making; needed to get loans; for tax assessment; show the value of the farm; help compare enterprises; settle disputes/claims; track production and performance; help in budgeting; provide information for research and extension
Explanation
Give both definitions, then seven distinct reasons.