Financial Planning: Statements & Record Keeping is one of 9 topics in the Grade 12 Agricultural Management Practices CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. What does a cash flow statement record?
The actual movement of cash into and out of the farm business over a period
Only production quantities, not any financial information
Only the veld grazing schedule
Only agricultural marketing methods used
Answer: The actual movement of cash into and out of the farm business over a period — A cash flow statement records the actual movement of cash into and out of the farm business over a period, as cash inflows and outflows actually occur.
Easy
2. What does the income and expense statement calculate as its key result?
The farm's profit or loss for the period, from total income minus total expenses
Only the total cash currently held in the bank
Only the total number of workers employed
Only the veld carrying capacity
Answer: The farm's profit or loss for the period, from total income minus total expenses — The income and expense statement records income earned and expenses incurred, and the difference gives the farm's profit or loss for the period.
Medium
3. Name the other common term for the income and expense statement.
Answer: profit and loss statement — The income and expense statement is sometimes called a profit and loss statement or income statement.
