Question: 1) In developing an accounting information system, it is important to establish procedures whereby all transactions that affect the components of the accounting equation are

1) In developing an accounting information system, it is important to establish procedures whereby all transactions that affect the components of the accounting equation are recorded. Why then, is it often necessary to adjust the accounts before financial statements are prepared even in a properly designed accounting system? Identify the major types of adjustments that are frequently made and give a specific example of each.

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