The Purpose of Reversing Entries Is To

question 37

Multiple Choice

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.

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Definitions:

Disappearing

The act of vanishing or becoming invisible or nonexistent.

Serial Monogamy

Individuals marry several people, but one at a time.

Cohabits

Describes a living arrangement in which two people, not married to each other, live together in an intimate relationship, often in the same household.

Lifetime

The duration of a person's existence from birth to death.