Using the Annual Report of your selected company answer the following questions in the Discussion:

• What are adjusting entries and why are they necessary?
• In your chosen company, which accounts might require adjusting entries?
• Why is it unethical not to record adjusting entries when required? What difference does it make?
• What is the purpose of an adjusted trial balance?

Post the name of your selected company from Module 1, Number 2 and the link to the statement with your discussion post. You may use a service such as Yahoo Finance to help research industry averages. The notes to the financial statements will also be of use in answering the discussion questions. For many of the ratios in the discussion, you will need 2-3 years’ worth of financial data.

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