Purpose of Adjusting Entries

question 40

Essay

Purpose of adjusting entries
The president of Crown Construction was informed that the first quarter financial statements would be available "as soon as the adjusting entries are made." Being a non-accountant,the president feels adjustments should not be necessary if the accounting department is operating in a competent manner.Does the need for adjusting entries at the end of the quarter imply that transactions are not being recorded properly? Explain.

---

Definitions:

Los Tigres del Norte

A renowned norteño band from Mexico, famous for their songs that tell stories of life, love, and the experiences of immigrants.

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, often to imply a resemblance.

Walmart

Walmart is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, known for its large scale and low prices.

Nonunionized Workers

Employees who are not part of a labor union and therefore may not have the same representation or collective bargaining powers as unionized workers.