One of the major advantages of making adjustments in order to improve the quality of financial statements is that they:

Question

Quizplus · Accepted Answer

Making adjustments to improve the quality of financial statements ensures that revenues and expenses are recognized during the period they are earned and incurred, which helps to provide a more accurate picture of a company's financial performance. This is important for investors, creditors, and other stakeholders who rely on financial statements to make decisions about the company. The other options are incorrect because eliminating estimates of future activities would not be practical or feasible, recognizing revenues and expenses conservatively may not be appropriate in all situations, and manipulating numbers is unethical and can result in misleading financial statements.

One of the Major Advantages of Making Adjustments in Order