Record keeping steps

What should be included in the beginning of the year inventory?

• Only breeding livestock

• Only accounts payable and receivable

• All owned assets, accounts payable, accounts receivable, prepaid expenses, and the beginning cash balance

• Only livestock and crops purchased for resale

What should be included in the detailed breakdown of all outstanding loans?

• Principal, interest, remaining loan balance, and accrued interest

• Only the principal amount

• Only the interest amount

• Only the remaining loan balance

What should be set up for all capital assets?

• An income ledger

• A depreciation schedule

• An expense ledger

• A cash flow statement

What is the purpose of setting up an expense ledger or journal?

• To record cash income by category of product sold

• To record cash expenses by expense category

• To record all outstanding loans

• To record the beginning cash balance

What should be continuously entered into the appropriate accounts in an expense ledger?

• Receipts

• Expenses

• Loans

• Inventory

What is the purpose of setting up an income ledger or journal?

• To record cash expenses by expense category

• To record cash income by category of product sold

• To record all outstanding loans

• To record the beginning cash balance

What should be continuously entered into the appropriate records in an income ledger?

• Receipts

• Expenses

• Loans

• Inventory

What should be entered at the end of the year for each of the items in the beginning of the year inventory?

• Only new items acquired during the year

• Only the beginning cash balance

• An end of the year inventory

• Only the outstanding loans

What does the business financial analysis include?

• A set of financial ratios

• Only the profit and loss statement

• Only the balance sheet

• Only the cash flow statement

What is the purpose of the business financial analysis?

• To measure the health and profitability of the business

• To record cash expenses

• To record cash income

• To record outstanding loans