To Reverse a General Journal Entry,you Should -

question 32

Multiple Choice

To reverse a general journal entry,you should -

• A)click the reverse entry tool in an empty journal window to open the search screen
• B)click the reverse entry tool in the home window to open the search window
• C)click the reverse entry tool in the displayed journal report to open the adjust entry screen
• D)click the reverse entry tool in the adjusting entry screen

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Definitions:

Inventory Period

The duration of time it takes for a company to turn its inventory into sales, typically measured in days.

Operating Cycle

The average period of time between the purchase of goods and services for production and the receipt of cash from sales of the final products.

Inventory Turnover

A financial ratio that measures how many times a company's inventory is sold and replaced over a specific period.

Payables Turnover

A financial ratio that shows how quickly a company pays off its suppliers by comparing net purchases to average accounts payable.