Can you please explain this? I do not understand the concept of this chart

Summary of Adjustments Types of Adjustments Prepaid expenses Unearned revenues Account Relationship Accounts before Adjustment Assets and expenses Assets Overstated Expenses Understand Liabilities and Liabilities Overstated revenues Revenues Understand Assets and revenues Assets Understand Revenues Understand Expenses and Expenses Understand liabilities Liabilities Understand Accrued revenues Accrued expenses