At the end of the accounting period a company makes a charge in its financial statements for oil delivered, not invoiced but used. Then this adjustment is in accordance with the following concept:

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This adjustment follows the accruals concept, which states that expenses should be recognized when they are incurred, not when payment is made. This ensures that the financial statements reflect all expenses related to the period, including those for which invoices have not yet been received.

At the End of the Accounting Period a Company Makes