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:

Flexibility

The capacity to adapt thoughts and behaviors in response to changing circumstances or new information.

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Employees who perform professional, managerial, or administrative work, typically in an office or other administrative setting, as opposed to manual labor.

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The cardinal principle refers to a fundamental rule or truth that serves as the foundation for a system of belief or behavior.

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The act of quantifying the number of words in a document, often used to measure the length of essays, articles, or other written materials.