Adjusting entries are made for a variety of reasons. It is the basis of accrual accounting. The purpose of adjusting entries are to record non-cash entries such as depreciation, revenues or sales that have not been billed yet, or expenses that need to be recorded for recent invoices. This chapter provides examples for 4 categories. To link this process to your personal life, are the any items that you can think of that would require an adjustment in your finances or your financial budget throughout the year