An Evaluation of Differences between Cash and Accrual Income for Illinois Farms
Newport, Scott M.; Lins, David A.; Department of Agricultural Economics at the University of Illinois, Urbana
Журнал:
Applied Economic Perspectives and Policy
Дата:
1990
Аннотация:
Net farm income is a measure of farm financial performance frequently used by farmers, leaders, and financial consultants. However, distortions may arise if cash income is used to measure performance. Results of this study suggest large differences between cash and accrual measures of net farm income and these differences vary by farm type, size, level of growth and degree of financial stress. Tax savings due to the cash method are also found to be large, especially on farms undergoing expansion.
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