What type of information does a "Year-End Adjustment Summary" typically include?

The "Year-End Adjustment Summary" primarily serves to document and detail all adjusting entries that have been made at the end of the accounting period, along with pertinent explanations for each entry. This summary is crucial as it provides transparency in the financial reporting process, clarifying which financial figures have been adjusted and why those adjustments were necessary. It helps stakeholders understand changes in account balances due to accruals, deferrals, and other necessary corrections that align financial statements with the accrual basis of accounting.

The inclusion of explanations is particularly important because it ensures that anyone reviewing the financial statements has context for the adjustments, making it easier to follow the rationale behind the changes in the financial reports. This aids in maintaining the integrity and accuracy of the financial information presented and supports good accounting practices.

In contrast, other choices would not provide the comprehensive overview offered by the adjustment summary. A list of cash transactions or only major financial transactions lacks the specificity and depth of information regarding adjustments, while future budgets and forecasts are separate components of financial planning that do not pertain to historical adjustments made in the accounts.