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GAAP
Generally Accepted Accounting Principles
Completing Tax Forms
you don't pay more than is required
Balance sheet
shows assets, liabilities and equality
Income
may include calculations of "net returns" earned by
various resources used and "net income" earned
Enterprise budgets
Costs and returns for a specific crop or livestock on a per acre or per unit basis
Used to determine operating budget
FASB
Financial Accounting Standards Board
Making Management Decisions
day to day and long-range planning and analysis
Income statement
income and expenses for a given period
Operating budget
covers all expected income and expenses for a family, a farm or a business for one year.
Operating budget
Income and expenses for an entire farm or
Includes enterprise budgets and other income and expenses
FFSC
Farm Financial Standards Council
Acquiring credit and investments
to show how you plan to make a profit or to sell the farm or business
Statement of cash flow
all money coming in or going out during a period of time
Enterprise budget
covers only income and costs associated with a single enterprise (corn crop or hog enterprise)
Variable
linked to production
Accounting systems
deliver many different kinds of statements to provide a quick picture of business
Records
only useful if organized into a system
Statement of owner quality
reports the factors that have caused the owner's equity to change between one balance sheet and another
Partial budget
covers only the costs and income that will change as a result of the decision that is being considered
Fixed
occur regardless of production
Personal budgets
mainly spending plans
Revenue
sales from all sources
Expenses
variable and fixed costs
Cash flow budget
an estimate of cash to be received vs. cash to be used to pay bills, make investments and cover other needs
Income
the sale of goods less the cost