Why adjustments need to be made at the end of every accounting period?

Adjustments at the end of each accounting period ensure that financial statements accurately reflect the company's financial position and performance. These adjustments account for accrued revenues and expenses, deferred items, and any necessary corrections to ensure compliance with the accrual basis of accounting. This process helps in recognizing income and expenses in the period they occur, providing stakeholders with a true view of the company's profitability and financial health. Ultimately, these adjustments enhance the reliability of financial reporting.