Query: What is the difference between agricultural accounting and ordinary business accounting?
Context: Agriculture is a unique industry in that it revolves around living entities like livestock and crops. Perhaps the most significant difference between agricultural and ordinary business accounting is that agricultural accounting is based on the cash system of accounting, meaning income is recorded when it is received in cash. Expenses are recorded when there is an outflow of cash. Another major difference is that items in agricultural accounting, be they assets or liabilities, are recorded at market value, whereas traditional business accounting records them at cost.