As for me, I agree that adjusting entries will cause too much delay in preparing financial statements. However, it is necessary for adjusting entries because it used as a basis to prepare financial statements. Adjusting entries is to update the accounts to conform with the accrual concept. It is prepared in order to achieve a proper matching of revenues and expenses in measuring income and to achieve an accurate presentation of assets, liabilities and stockholders’ equity.
If adjusting entries are not prepared, some income, expense, asset, and liability accounts may not reflect their true values when reported in the financial statements. In conclusion, adjusting entries is important to ensure that financial statements reflect the true financial position and performance of a business by allocating to the appropriate period the income earned and expenses incurred.