Using the following information,list the items that will require adjustments to the accounts of Salem Co.Also,indicate which accounts will increase or decrease due to the adjustment.
Definitions:
Audit Report
An official opinion issued by an auditor based on an examination of a company's financial statements, expressing the auditor's view on whether the financial statements give a true and fair view of the company's financial performance and position.
Independent CPA
A Certified Public Accountant who performs an audit without having any conflicts of interest, ensuring impartiality and objectivity.
Acid-test Ratio
A stringent indicator of a company's short-term liquidity, calculated by dividing cash, marketable securities, and net receivables by current liabilities.
Receivables Turnover
A financial metric indicating how quickly a company collects on outstanding accounts receivable in a given period, calculated as net credit sales divided by average accounts receivable.
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