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Distinguish Between a Reversing Entry and an Adjusting Entry

question 209

Essay

Distinguish between a reversing entry and an adjusting entry. Are reversing entries required?


Definitions:

Office Furniture

Items of movable equipment that are used in an office setting for functional or decorative purposes.

Documentary Evidence

Written or printed records that are used to support the transactions recorded in the accounting system.

Trial Balance

An accounting report that lists all the balances of each ledger account at a point in time to ensure that debits equal credits as part of the double-entry bookkeeping system.

Adjustments

Modifications made to financial statements to correct errors, account for omitted transactions, or bring the statements in line with Generally Accepted Accounting Principles (GAAP).

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