What is a good response to the Information below?

give an opinion.....

Prepaid expenses are future expenses that have been paid in advance. According to generally accepted accounting principles (GAAP), expenses should be recorded in the same accounting period as the benefit generated from the related asset; therefore, the company needs to adjust.

For example, a company purchases insurance for the upcoming twelve-month period. It pays $240,000 upfront for the insurance policy. The Company will initially book the full $240,000 as a debit to prepaid insurance, an asset on the balance sheet, and a credit to cash. Each month, an adjusting entry will be made to expense $20,000 (1/12 of the prepaid amount) to the income statement through a credit to prepaid insurance and a debit to insurance expense. The final $20,000 will be fully expensed in the twelfth month, and the prepaid account will be zero.

The other adjusting entries do a companny needs to make for a period before preparing financial statements.

Accrued revenues have been earned by providing a good or service, but for which no cash has been received.

Accrued expenses is that expense which is recognized on the books before it has been paid.

Deferred revenues refer to payments received in advance for services that have not yet been performed or goods that have not however been delivered.