Reversing Entries Are 1. Normally Prepared for Prepaid, Accrued, and Estimated Items

question 117

Multiple Choice

Reversing entries are
1. normally prepared for prepaid, accrued, and estimated items.
2. necessary to achieve a proper matching of revenue and expense.
3. useful in simplifying the recording of transactions in the next accounting period.

• A) 1
• B) 2
• C) 3
• D) 1 and 2

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Definitions:

Sensation

The process and perception of detecting stimuli from the environment through sensory organs and translating it to the brain.

Movement

The act or process of changing position or place, facilitated by the muscular system and the nervous system.

Perineurium

Connective tissue sheath surrounding a nerve fascicle.

Fascicles

Bundles of muscle or nerve fibers encased in connective tissue, contributing to the structure and function of muscles and nerves.