Reversing Entries

question 48

Multiple Choice

Reversing entries:

• A)Are necessary when journal entries have been incorrectly recorded.
• B)Are a required step in the accounting cycle.
• C)Will often result temporarily in abnormal account balances in some accounts.
• D)Are required only if the company uses accounting software to record journal entries.
• E)Must be made before preparing the post-closing trial balance.

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Definitions:

Modular Production

A manufacturing technique that involves assembling complex products from interchangeable modules or components.

Modified T-account

A modified T-account is a version of the traditional T-account used in accounting, adapted to include adjustments or additional information for clearer financial analysis.

T-account Close

A closing technique in sales where pros and cons are weighed against each other, similar to entries in a T-account, to assist in decision-making.

Continuous-agreement

An ongoing contract that renews automatically until explicitly terminated by one party.