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Aztec company incurred a $50,000 liability that has not been recorded yet. The company also received $75,000 from customers and recorded the receipt but has

  1. Aztec company incurred a $50,000 liability that has not been recorded yet. The company also received $75,000 from customers and recorded the receipt but has only done $50,000 of the work. The president of the company wants to skip adjusting entries this year. What is the big deal? What would be the impact on the financial statements? Why might the president want to skip the adjustments? Who would be impacted?

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