The Adjusting Process discussion Assignment Example | Topics and Well Written Essays - 250 words

The Adjusting Process discussion - Assignment Example In certain cases, the records are not reorganized except at the closing stages of the period. The adjustments are updated because certain expenses are never recorded on a daily basis, certain revenues and operating expense are acquired as business transpires rather than as a detached transaction and certain revenues and operating costs may not be recorded. The four categories of accounts that require adjusting entries include; prepaid expenses, accrued expenses, unearned revenues and accrued revenues (Warren, Carl, James, and Jonathan 105). In accordance to ethics, there are dictations that a commodity ought to have a precise date by which money ought to be recompensed to the buyer in cases where the commodity has not been utilized as a charge up to the moment it is either utilized or recompensed. This means that the gift card ought to have an expiry date to ensure that fairness is dictated. A gift card assures that the buyer’s money is not used up at the same situate where they purchased the card. The implications are that accounting for the cards transaction offers an evolving reporting for vendors. The accounting for the previous transaction for the cards cannot reveal any reputed worth but rather a legal responsibility for overdue profits and the unused cost creates problems in