I have included the question as a word file. Thanks!

Hello, These are for participation points again. I just need to answer the main question and comment on the answers that my classmates gave for the question. QUESTION: (50-100 words) Why bother with adjusting entries? Hello again everyone! Week 3 will be interesting. Let's talk about adjusting entries. Why would anyone want or feel the need to make adjusting entries at the end of the period? Does the person need job security? Is there a reason? Which basis of accounting requires adjusting entries? Is there a principle or are there multiple principles of accounting that make adjusting entries absolutely necessary? What is that principle or if more than one, please give the others as well. And, of course, as always, explain your answers. That is, explain why you said what you said. :) - smiles NAI's ANSWER: (50 words) According to our text, Adjusting entries are necessary in order for revenues to be recorded in the period they are earned, and for expenses to be recognized in the period in which they are incurred. It also ensures that the revenue recognition and expense recognition principles are followed. Adjusting entries are required whenever a company prepares financial statements. This is to ensure that each account in the trail balance is complete and up to date for the financial statement purpose. There are two types of Adjusting entries, Deferrals and Accruals. Deferrals include Prepaid expenses and Unearned revenues. Accruals include Accrued revenue and Accrued expenses. RIMA's ANSWER: (50 words) Making adjusting entries at the end of the period keeps financial statements up to date with revenues earned and expenses incurred. By creating adjusting entries at the end of each period, you can counterpart incomes and expenses to their appropriate accounting periods. Adjusting entries do allow for job security, as it keeps each revenue to the appropriate period. Without adjusting entries, when reporting financial statements, one can record a huge revenue benefit (or expense) in one period, which would not entirely show you what the operations are month to month. The other method of accounting is the Cash Basis. Cash basis records revenue when you receive it and expenses when you pay them. Cash basis, however, is not allowed under GAAP. Therefore, creating adjusting entries is necessary when creating financial statements on an accrual basis, since it is the only principle allowed by GAAP