and odluhle arm bu adjustmes, deproceding livesness, After these entries The procedures for the adjustments The Proentories, Pes in va performance o f the farm busll involving inventories accrued revenues, changes in values of raised breeding livestock, inco deferred taxes for the first year of operation for a farm business. Afte are recorded and posted and an adjusted trial balance is prepare statements can be prepared, which is the subject of the next chapter nses, depreciati8ll ng livestock, income t taxes, and se ens e iae end o Farn the nin d, the financial PROBLEMS 4l lidentif which of the phrases below describe (a) the accrual-basis system a the accrual-adjusted approach, or (c) the cash-basis system. tha Revenue is recorded only when cash is received. Revenue is reported when it is earned, whether the cash has been or not. received Expenses are reported when they have been incurred, not necessarily wh they have been paid. Expenses are recorded only when cash is paid. No inventory is reported. Inventory is recorded when it is purchased