Question

Livestock are farm animals regarded as an asset to a farmer true or false

Answer 1

The given statement is true.

Livestock farmers raise animals to earn money by selling fish in farms, crops such as maize and wheat, produce on a bearer plant, and trees being grown for lumber.

Answer 2

Livestocks are farm animals regarded as an asset to a farmer is a TRUE statement.

AGRICULTURAL ACCOUNTING:

• Livestock is considered as an asset and inventory based on the type of animals.
• The production animals reared with a short lifespan are categorized under the inventory class.
• However, production animals with long life are regarded as an asset for agriculture.
• These animals are mainly breeding animals such as sheep, goats, and,  cattle.
• The overall maintenance cost of the animals is depreciated over the useful estimated life of the reared animals.
• Overall maintenance cost involves raw material, use of the field, cost of care of the breeding animals, and production of the crops.