Asked by
Dominique Jrmommy
on Oct 16, 2024
Verified
The purpose of reversing entries is to:
A) Simplify a company's recording of certain journal entries in the future.
B) Correct errors made in previous journal entries.
C) Ensure that closing entries have been properly posted to the ledger accounts.
D) Make certain that only permanent accounts are carried forward into the next accounting period.
E) Complete a required step in the accounting cycle.
Reversing Entries
Journal entries made at the beginning of an accounting period to reverse or cancel adjusting entries made at the end of the previous period, simplifying the recording of subsequent transactions.
- Comprehend the rationale and methodology involved in creating reversing entries.
Verified Answer
DC
Learning Objectives
- Comprehend the rationale and methodology involved in creating reversing entries.