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:

Relationships

Connections or interactions between individuals or entities based on social, emotional, or professional ties.

Provide Aid

To offer assistance, support, or relief to individuals or groups in need.

Directly Linked

Refers to a clear and straightforward connection or relationship between two or more elements or concepts.

Money

A medium of exchange that facilitates the transfer of goods and services, acting as a measure of value in economic transactions.