How to Do a Negative Adjustment in Accounting. Adjusting entries are journal entries you make at the end of your accounting cycle. You make an adjusting entry if you did not enter a transaction ...

For example, if a company has earned $500 in interest at the end of an accounting period that has not been paid, it would make an adjusting entry, consisting of a $500 debit to interest receivable ...

We find that stock returns around 10-K filings are positively related to accounting adjustments calculated from financial statement note information. We further document that the likelihood of equity ...