Reversing Entries

question 117

Multiple Choice

Reversing entries

• A) Are optional
• B) Are mandatory
• C) Fix errors in journal entries
• D) Are required by CRA
• E) Are not posted to the ledger

---

Definitions:

AASB 137

An Australian Accounting Standards Board standard related to the accounting for provisions, contingent liabilities, and contingent assets.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and cash flow statement.

Note Disclosure

Supplementary information provided in financial statements, offering insight into accounting policies, risks, and uncertainties.

Contingent Asset

An asset that might come into existence subject to the occurrence of some uncertain future event.