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Use the link bellow, I think it's well developed.

Adjusting Entries, Accruals and Deferrals, ...... 

Good reading.

Adjusting entries and Accounting Principles

Adjusting entreis are tools by wich accountants apply the Realization   and  Matching Principles

Through these entries, revenues are recognized as they are earned, and expenses are recognized as ressources are used or consumed (used up)  in producing the related revenue.

lets move now to another concpet, called the concept of materiality:

The concept of materiality  allows  accountants to use estimated amounts and to ignore certain accounting principles if these actions will not material effect on the financial statements. A material effect is one that might reasonably be expected to influence the decisions made by the users of financial statements.

The Realization principle or the "revenue recognition" principle.  In accrual-based accounting, revenue should only be recognized when it is earned, i.e. when you sell a product or perform a service only then should you recognize or record that revenue. It is related to the matching principle that requires revenues and associated expenses to be matched or recorded in the appropriate periods.

  The Matching Principle is a fundamental concept of accrual basis of accounting  that  offset revenue against expenses on the basis of their cause-and-effect relationship. It  states that, in measuring net income for an accounting reccord, the costs incurred in that period should be matched against the revenue generated in the same period. See also accounting concepts.

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The Materiality Concept

• Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken on the basis of the financial statements

• Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or nature of the item, or a combination of both, could be the determining factor

ILLUSTRATION

Company A bought 6 months supplies of stationery costing $600.

Question: Should the company spread the cost of this stationery for 6 months by expensing off $100 per month to the Income Statement ?

Answer : Based on this concept, as the amount is so small or immaterial, it can be expensed off in the current month instead of tediously expensing them for the next 6 months