Sept 4, 2023
AGBU 2389 03
Chapter 3 Questions
What factors affect the choice of accounting period for farmers and ranchers?
When the farmers bought their land. When they plant their crops. When they run their
Is it possible to use double entry with a cash accounting system? If so, what
the advantages and disadvantages?
one advantage would be that even though the cash is not accounted for you will
have it recorded twice in your system. Another advantage is the profit and earned or lost can be
calculated. One disadvantage is it is difficult to find errors if the wrong amount of money is
recorded to begin with.
Place an X under the columns below to indicate whether each business event is a
production, investment, or financing activity.
Pay cash for tractor repairs
Borrow 40,000 for operating
Pay interest on the loan
Charge 12,000 of feed
Sell 35,000 of corn
Pay principal on a loan