Frank Foley uses accounting software to record the income and expenditure for his Outdoor World business. Frank likes to concentrate on the sales and customer service side of the business, so at the end of every year he hires an accountant to help him prepare the annual fi nal accounts. Sometimes the accountant needs to make adjustments to the fi nal accounts before they are complete.
1. Why do adjustments sometimes need to be made to fi nal accounts?
Sometimes the data used to prepare the fi nal accounts of a business may not be fully up-to-date. This can prevent business owners, like Frank Foley, getting a true and fair picture of the performance of the business. It is, therefore, sometimes necessary to make some adjustments to the fi nal accounts.
