True or False: Financial reports should be produced before any adjustments have been made to the accounts.

Financial reports are designed to provide an accurate representation of a company's financial position and performance. Adjustments are an integral part of the accounting cycle, ensuring that all accounts reflect the most accurate and current information. These adjustments might include accruals, deferrals, depreciation, or inventory adjustments, among others.

Producing financial reports before making any necessary adjustments can result in misleading information. For instance, revenues earned but not yet recorded (accrued revenues) or expenses incurred but not yet paid (accrued expenses) would not be reflected in the reports, which could lead to a distorted view of profitability or financial health.

Therefore, financial reports should be prepared after all adjustments have been entered, as this gives stakeholders a true and fair view of the financial situation. Hence, the assertion that financial reports should be produced before adjustments is false.