Four Types of Adjustments Deferral of expense Deferral of revenue Accrued expense Accrued revenue The three steps in the adjusting process are as follows: Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record an adjusting entry to get from step 1 to step 2. Knowledge Check 01 Place the steps in the three-step adjusting process in the correct order: Definition Step 1 Step 21 Step 3 Term