4.1.2 [Farm Record Keeping]

Question 1

FARM RECORDS

Answer 1

1. written statements for a definite purpose

Question 2

PURPOSE OF FARM RECORDS

Answer 2

1. provide financial and physical information
2. increase efficiency on use of resources
3. planning and budgeting
4. evaluation of profitability

Question 3

TYPES OF FARM RECORDS

Answer 3

1. financial records
2. operating/physical records

Question 4

FINANCIAL RECORDS

Answer 4

1. measure financial position and performance of farm business
2. e.g. income record; expense record

Question 5

INCOME RECORD

Answer 5

1. contribution of each farm enterprise to total farm income

Question 6

EXPENSE RECORD

Answer 6

1. costs of operation of a farm business

Question 7

OPERATING/PHYSICAL RECORDS

Answer 7

1. technical relationships and resource allocation
2. e.g. material input record; labor record; farm maps

Question 8

MATERIAL INPUT RECORD

Answer 8

1. input-output relationship

Question 9

LABOR RECORD

Answer 9

1. payroll preparation

Question 10

STEPS IN SETTING UP A SYSTEM OF FARM RECORDS

Answer 10

1. inventory taking
2. record financial transactions
3. supplement operating/physical transactions