When accountant produces a financial statement they need to indicate the adjustments.

These are variables that would affect the result if applied differently.

rent paid in advance for the following year

accrued expenses for example, the electricity bill for the last period is paid the following year

pre-paid expenses for example, if insurance is paid in advance of a month, or a subscription

paying of debts owing for example, rent outstanding

As you can see these all could affect the numbers, because ideally one should be able to compare period with period from year to year, to make financial decision regarding the business, whether as business manager, stock holder, the bank, prospective purchaser, etc.

others adjustments could include: discounts, goods taken for own private use, and other private purchases