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In this video, the speaker introduces the concept of adjusting entries in accounting, focusing on prepayments and accruals. Adjusting entries are journal entries made at the end of each accounting period to align the books with the accrual basis of accounting. The speaker, James, acknowledges viewer requests for coverage of this topic and plans to create a mini-series on adjusting journal entries. The video serves as an introduction to the topic, providing a big picture view of accounting before delving into specific issues caused by prepayments and accruals.