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In this tutorial, you've learned key steps of the accounting cycle, including analyzing business transactions, journalizing them, posting to a ledger, and creating an unadjusted trial balance. The next step is understanding adjusting entries. There are typically six general types, including prepaid expenses and deferred revenues. This session will focus on the general process of making adjustments, with three specific examples provided. It's important to note that adjusting entries are usually made at the end of a period and focus on what has changed or needs updating. Proper analysis of any changes is crucial, as they can significantly impact your financial numbers.
