All of the Following Regarding Reversing Entries Are True Except

question 36

Multiple Choice

All of the following regarding reversing entries are true except:

• A)Reversing entries are optional.
• B)Reversing entries are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at the end of the previous accounting period.
• C)Reversing entries are used to simplify a company's recordkeeping.
• D)Reversing entries are dated the first day of the new accounting period.
• E)Reversing entries should not be the exact opposite of previous period adjusting entries.

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Definitions:

Competitive Supply Market

Refers to a market environment where multiple suppliers are competing to offer products or services, usually driving down prices and increasing quality.

Switch Suppliers

The process of changing from one supplier to another to improve service, reduce costs, or gain other advantages.

Pareto Analysis

A statistical technique in decision-making used for the selection of a limited number of tasks that produce significant overall effect. It uses the principle that 80% of results come from 20% of the actions.

Transactions Account

A bank account that allows for the direct deposit and withdrawal of funds without any limitation on the frequency of transactions.