Accrual adjustments are made on the income statement to better reflect earned profitability performance of the farm business. In the Financial Management Factsheet Understanding the Farm Income Statement-Part 2: Accrual Adjustments and Interpretation, UW-Extension Taylor County Agriculture Educator Sandy Stuttgen discusses how accrual adjustments are made in the income statement and what the income statement calculations reveal.
Understanding the Farm Income Statement-Part 2: Accrual Adjustments and Interpretation, is one factsheet in the Financial Management Factsheet series designed to help individuals understand the basic principles of financial record keeping. Additional factsheets in the series include:
- Understanding The Farm Financial Model
- Understanding the Farm Business Balance Sheet, Part 1 and Part 2
- Understanding the Farm Income Statement, Part 1 and Part 2
- Understanding Profitability Using the Farm Business Balance Sheet and Income Statement