This document is a chapter from an accounting textbook about balance day adjustments. It discusses key terms like accrued expenses and prepaid expenses. It explains that balance day adjustments are needed to follow the accrual concept of recording transactions in the period they are earned or incurred, rather than when cash is received or paid. The chapter provides examples of general journal entries for typical balance day adjustments like accrued revenue, prepaid expenses, accrued expenses, and revenue received in advance. It notes that these adjustments impact asset and liability accounts in the statement of financial position.