Question

output used by owner should be treated as​

Answer 1

Answer:

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Answer 2

The complete question is:

In farming accounting, the output used by owner’s family should be treated as

a. Income b. Expenditure c. Abnormal loss d. Normal loss

It should be treated as an abnormal loss.

• It is a type of loss that happened in the absence of the expected normal loss.
• When a farm's produce is consumed by the owner's family, it suffers an abnormal loss.
• Normal loss, in such a situation, will be incorrect since such a loss happens during the manufacturing process.
• Thus, the output of the owner is always treated as an abnormal loss.

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