An Example of a Reclassification Entry Would Be an Entry

question 15

Multiple Choice

An example of a reclassification entry would be an entry:

• A) to reduce inventory when client failed to write down its obsolete raw materials.
• B) to increase the income tax liability account when it was discovered that the tax rate would be higher than originally estimated.
• C) to change material credit balances in accounts receivable accounts to accounts payable accounts.
• D) to increase the allowance for doubtful accounts when it was discovered that a customer had filed for bankruptcy.

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Definitions:

Justinian Code

A collection of laws and legal interpretations developed under the sponsorship of the Byzantine emperor Justinian I.

Ancient Babylonia

An ancient civilization located in the region of Mesopotamia, known for its contributions to law, astronomy, and literature, among other fields.

English Common Law

A body of law developed in England that forms the basis for the legal system in English-speaking countries.

Partnership Capital

The total resources or assets contributed by partners to a partnership for starting or maintaining the business operations.