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adjustments for non-cash expenses
and statement of cash flows (this can occur at other points in time with appropriate adjustments) 5. Closing entries – prepare a
adjustments
inventory adjustments
they are adjustments based on reality
and inventory adjustments.Examples of Adjusting EntriesBy their nature
and generally demonstrates the short-term viability of the company's cash position. The statement of cash flow also explains how
adjustments may need to be made to the balance sheet to reflect reality.Once the depreciation cost (the amount that needs to be
depreciation is simply the unexpired cost of the fixed asset.Cash flow-- Depreciation does not contribute anything to the cash f
