What do you think the effect would be on the company’s financial statements if the adjustment was not made? Be specific.

All companies make adjusting entries. Review your selected company’s annual report and answer the following questions in the 4.3 Discussion: Adjusting Entries forum:

    • Find a line item listed on either the income statement or balance sheet that would indicate an adjusting entry was necessary and describe the entry.
    • What do you think the effect would be on the company’s financial statements if the adjustment was not made? Be specific. Name the statement, the category or accounts, and whether it would have increased or decreased.

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