A Reversing Entry

question 46

Multiple Choice

A reversing entry

• A) reverses entries that were made in error.
• B) is the exact opposite of an adjusting entry made in a previous period.
• C) is made when a business disposes of an asset it previously purchased.
• D) is made when a company sustains a loss in one period and reverses the effect with a profit in the next period.

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Definitions:

Glial Cells

Non-neuronal cells in the central nervous system that support, protect, and nourish neurons, playing a key role in maintaining homeostasis.

Neurons

Specialized cells within the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse, from one neuron to another target neuron, muscle cell, or gland cell.

Myelin Sheaths

Fatty coverings on the axons of some neurons that help speed neural impulses.