Adjustments are necessary to bring an asset or liability account to its proper amount and also update a related expense or revenue account.

Adjustments are necessary in accounting to ensure that financial statements accurately reflect the company's financial position and performance. These adjustments involve making changes to asset or liability accounts to bring them to their proper amount and updating related expense or revenue accounts to reflect the current period's activity. By making these adjustments, the financial statements provide a more accurate picture of the company's financial health.