Farm Business Analysis

These flashcards cover key terms and concepts related to farm business analysis, record keeping, and accounting as discussed in the lecture.

Data

Raw numbers and facts such as prices, costs, and quantities.

Information

Data that can be processed to become useful for decision-making.

Primary Data

Data collected directly from farmers including production, yield, and fertilizer usage.

Secondary Data

Data based on published statistics from government agencies and other organizations.

Quantitative Data

Numerical data such as age and household size.

Qualitative Data

Non-numerical data such as sex and occupation.

Cross-Sectional Data

Data taken at one time period.

Time Series Data

Data taken at several time periods.

Continuous Data

Numerical data that can be divided into smaller units such as height or weight.

Discrete Data

Data that cannot be divided into smaller units.

Ranked Data

Data which can be arranged into an ordered set of categories.

Nominal Data

Discrete data that cannot be arranged in an order.

Survey

A method for gathering farm management data using prepared questionnaires.

Rapid Rural Appraisal (RRA)

A quick assessment of agricultural conditions, identifying constraints and opportunities.

Participatory Rural Appraisal (PRA)

An appraisal involving the participation of local farmers to assess conditions.

Key Informant Interviews (KII)

Interviews with knowledgeable individuals to gather detailed insights.

Financial Records

Records of income, expenses, and financial transactions in farm operations.

Operating/Physical Records

Records showing the allocation of resources and materials in farm enterprises.

Farm Inventory

A detailed list of all farm resources with assigned values.

Depreciation

The annual loss in book value of an asset due to wear, tear, or obsolescence.

Book Value (BV)

The value of an asset after accounting for depreciation.

Acquisition Cost (AC)

The price paid for an asset including any additional costs incurred.

Useful Life

The period over which an asset is expected to be used.

Cash Accounting

An accounting method recording transactions when cash is received or expended.

Accrual Accounting

An accounting method recognizing revenue when earned and expenses when incurred.

Double Entry Bookkeeping

An accounting system where each transaction affects two accounts.

Balance Sheet

A financial statement showing the assets, liabilities, and equity of a business.

Income Statement

A financial report showing revenue, expenses, and profits over a period.