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 ...

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 ...

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 ...

For investors, security analysts, or other users of financial statements, changes in accounting principles can be confusing to read and understand. They need adjustments in order to compare ...