Answer the following questions:

1. Suppose the president of a company where you work as an accountant questions whether it is worthwhile for you to spend time making adjustments at the end of each accounting period. How would you explain the value of adjustments?"

2. "An officer of Westway Corporation recently commented that when he receives the firm's financial statements, he looks at just the bottom line of the income statement -- the line that shows the net income or net loss for the period. He said that he does not bother with the rest of the income statement because "it's only the bottom line that counts." He also does not read the blance sheet. Do you think this manager is correct in the way he uses the financial statements? Why or why not?"

3."Why should management be concerned about internal controls over purchases?"