Which of the following best describes an adjustment?

An adjustment is best described as a correction transaction made during reconciliation. Reconciliation is the process of ensuring that two sets of records (often the company's and the bank's) are in agreement. During this process, discrepancies may be identified, requiring corrections to account balances. Adjustments are essential for accurate financial reporting and for maintaining the integrity of the accounts. They can include changes to transactions that were recorded incorrectly or omitted altogether. This ensures that the financial statements reflect an accurate picture of the organization’s financial position.

The other options represent different types of transactions: collecting late fees involves account management rather than adjustment; purchase transactions relate to expenditures rather than corrections; and transferring funds between accounts is a standard banking activity that does not inherently involve correcting discrepancies.