Corporate Governance and Year-End Adjustments Name Institutional Affiliation Corporate Governance and Year-End Adjustments The end-of-year adjustments have an impact on the income statement and the statement of financial performance. The importance of adjusting the end-of-year balances is to post the balance of the retained earnings account to match with the one reported on the statement of retained earnings and hence all temporary accounts at the beginning of next year will start with a zero balance. A company makes year-end entries such as closing inventory which is a reduction in the income statement and a current asset in the balance sheet (End of Year Adjustments, 2013). Accruals are...
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