Question

Explain the advantages and limitations of farm accounting​

Answer 1

Answer:

hey hope it helps you answer

Answer 2

While it is a good measuring and recording technique, often it is not understandable to farmers.

Advantages -

1. It is used in assessing and mitigating farm business risks and opportunities
2. It measures how efficiently resources are employed and determines income generation from the farm
3. Helps in the ascertainment of total value know and determine part actually owned by farmer and others.
4. Helps in detecting loss or theft of cash or stock

Disadvantages

1. As farmers generally practice subsistence nature of farming, recording is not essential  to them.
2. Sometimes farmer acts as an owner and labourer both, thereby making recording complex
3. Illiteracy, lack of enterprise know how and taxation fear prohibits employing recording.  
4. Forecasting becomes complicated due to the high risk and uncertainties involved