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

Question

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Making adjustments to improve the quality of financial statements ensures that revenues and expenses are recognized during the period they are earned and incurred. This is important for accurately reflecting the financial position and performance of a company, and ensuring that financial statements comply with accounting principles and regulations. Option B is incorrect because estimates are often necessary in financial statements, and adjusting them does not improve their quality. Option C is incorrect because recognizing revenues and expenses conservatively may not accurately reflect the true financial position and performance of a company. Option D is incorrect because manipulating numbers is unethical and could lead to legal and financial consequences.

One of the Major Advantages of Making Adjustments in Order