1. What if there were several unrecorded transactions during an earlier accounting period?

Can the accountant make adjustments during the current accounting period with regards to the unrecorded transactions without misrepresenting the actual totals of the affected accounts for the current period? If not, how can the accountant reconcile the inconsistencies, and will new sets of financial statements be required to be published in correction of the incorrect financial statements or will the corrections just be included as notes to the current financial statements? Please cite an example. 2. How is the Nature of Expense method of preparing an income statement different from the Function of Expense method? Please cite an example. 3. How is the Adjusting Method of updating the merchandise inventory different from the Closing Entry Method? Please cite an example. 4. What differences are there in recording, adjusting and closing entries, and preparing financial statements between the Perpetual Inventory System and the Periodic Inventory System? Please cite an example. 5. In both Perpetual and Periodic Inventory Systems, how do we record losses in relation to the Merchandise Inventory Account, say, loss due to theft, misplacement, or during transit? Will the recording of the loss not affect the computation of Cost of Goods Sold if the ending inventory amount is reduced not because of sales but rather because of loss?