Introduction to Adjustments in Accounting

The video tutorial explains the concept of adjustments in accounting, highlighting their unique nature compared to regular journal entries. Adjustments are typically made at the end of an accounting period to reflect transactions or events not yet recorded. They affect both income statement and balance sheet accounts, involving revenue, expenses, assets, or liabilities. The tutorial introduces four types of adjusting entries: deferred expenses, deferred revenues, accrued expenses, and accrued revenues. Examples of these adjustments will be covered in subsequent videos, and prior knowledge from Chapter Two is recommended for better understanding.

How do adjustments affect income statement and balance sheet accounts?

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Describe the concept of deferred expenses and revenues.

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