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What Are Adjusting Entries and Why Are They Necessary

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What are adjusting entries and why are they necessary?


Definitions:

Competence

Competence is the ability to perform a task or role successfully, demonstrating a required level of skill, knowledge, and judgment.

Discomfort

A feeling of physical or psychological unease or distress.

External Factors

External factors refer to the external environment's influences on a business or situation, including economic conditions, societal trends, and governmental policies.

Mutual Understanding

A state of knowledge or awareness shared between two or more parties regarding each other's feelings, thoughts, and communications.

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