Page 108 - Agri-Business Management Handbook

ACCOUNTING FOR ..................................... CHAPTER 5.
AGRI-BUSINESS ENTERPRISES

INTRODUCTION

Accounting is a critical function for any business enterprise. It involves all aspects of
preparation of records and keeping those records in a manner that contributes to better
financial reports. The end result of accounting is a set of financial reports that can be used
by the managers, potential investors and lenders to improve the quality of their decisions.

As emphasized in previous chapters, importance of accounting, basic
entrepreneurs need to create accounting records, measuring and
sustainable businesses – which reporting financial performance and
cannot be actualized without proper analyzing and interpreting financial
accounting of the business resources. statements in the context of agri-
In this chapter, we focus on the businesses. We illustrate concepts using
practical examples and case studies.

Learning Outcomes

When you have completed this chapter, you should be able to:

Explain the meaning Analyze and interpret
of accounting financial statements
using financial ratios

Explain the main Prepare a statement
accounting records of financial position
required for an agri- for an agri-business
business
Prepare a
Explain the double entry statement of
concept as the main principle financial
in accounting position for an
agri-business

Prepare an income statement
for an agri-business including
a manufacturing concern

51AGRI-BUSINESS MANAGEMENT HANDBOOK |