using examples, examine the relevance of the following as
final accouting adjustments;
1.reserves
2.provisions
3.disposal of assets
4.control accounts
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Answer / Shruti Mishra
{"1.Reserves": "Final Accounting Adjustment: Reserves are amounts set aside to provide for future liabilities or contingencies. For example, a company might have a reserve for depreciation, bad debts, or research and development costs. Reserves are created when there is an uncertainty about the amount of expenses that will be incurred in the future.",n"2.Provisions": "Final Accounting Adjustment: Provisions are amounts set aside to cover future liabilities that have a virtual certainty of occurring, but the exact amount is uncertain. For example, a company might have a provision for warranty expenses or litigation costs. Provision is created when there is an existing liability where the amount cannot be determined accurately.",n"3.Disposal of Assets": "Final Accounting Adjustment: Disposal of assets refers to the sale, transfer, exchange, abandonment, or destruction of an asset. When disposing of an asset, any gain or loss should be recorded in the financial statements. For example, if a company sells equipment for more than its book value, it will record a gain; if it sells it for less, it will record a loss.",n"4.Control Accounts": "Control accounts are a part of the chart of accounts used to consolidate similar types of accounts in one place. They are not directly found on the financial statements but are used to verify the accuracy of the balances shown in the statements. For example, the sales control account is used to summarize all individual sales transactions and provides the total sales revenue for a period."
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