Which of the following farm documents is usually prepared at the end of the year?
Answer Details
A profit and loss account is a document that is usually prepared at the end of the year. This document provides a summary of the farm's income and expenses over a given period of time, usually a year. The profit and loss account shows the farm's revenues, such as sales of crops or livestock, as well as its expenses, such as seed and fertilizer costs, labour costs, and equipment costs. By subtracting the expenses from the revenues, the profit and loss account determines the farm's overall profit or loss for the year.
A farm budget is a document that is used to plan and track the farm's finances over a given period of time, usually a year. The farm budget includes projections for income and expenses and is used to help the farmer make decisions about how to allocate resources and manage costs.
A labour record is a document that tracks the hours worked and pay for each employee on a farm. This document is used to keep track of employee hours and pay for payroll purposes and can also be used for tax and record-keeping purposes.
A farm inventory is a document that lists all of the farm's assets, such as equipment, livestock, and crops. The farm inventory is used to keep track of the farm's resources and to help the farmer make decisions about how to allocate resources and manage costs.