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:

Agent

An agent in economics is an individual or entity that makes decisions impacting the allocation of resources or engagements in economic transactions.

Undesirable Behavior

Actions or patterns of action viewed as negative by society and often lead to social or legal penalties.

Economic Experiments

Controlled trials or simulations conducted to test economic theories or to study the effects of economic policy changes.

Winning

In a business context, achieving a competitive advantage or success in a specific market or area.