Final answer:
The four questions asked when analyzing an adjustment are Who, What, Why, and How. These questions aid in detailing the adjustment's specifics and ensuring accurate financial documentation.
Step-by-step explanation:
When analyzing an adjustment in the context of business or accounting, the four questions typically asked are Who, What, Why, and How. These questions help clarify the details of the adjustment and assess its impact on the business's financial statements.
- Who refers to the parties involved in the adjustment or who it affects.
- What identifies the nature of the adjustment or what is being adjusted.
- Why explains the reason behind the adjustment or why it's necessary.
- How describes the process of adjusting or how it will be carried out.
Asking these questions ensures the adjustment is properly applied and documented, maintaining the accuracy of financial records.