What is the affect of adjusting entries on profit margin?

Question

ANd how can you tell by looking at financial statements and adjusted trial balance - what the affect is ? (positive or negative) ??

Answer 1

Depends on the entry, as some are basically pluses, and some are minuses- it would be the underying calculations where adjustments would be made as the financial statement is really just a summary of multiple other reports and figures.

Basically you try to do 3 different things- 1) make it look like you brought in more revenue then you did 2) make it look like what you own is worth more then it is and 3) make it look like you spent /owe less then you do.

The cuumulative effect is that your company looks stronger and healthier then it really is, not only will this make your stock potentially more valuable, but it can affect who does business with you, what rates you pay for loans, etc..

Answer 2

Yes. There remains a coven here who make it their business to 'report' any 'intruder' for 'violation'. It really is the most demeaning sort of social intercourse (snuckle) for any human to engage in, but that shows exactly what these people are who do that - the most degraded form of humanity (kinda reminds you of The Time Machine, doesn't it?) I've seen perfectly innocent questions from new people here 'reported' with the speed of light - just because this coven don't want new people here! It seems they suffer from the delusion that they 'own' this site.