Reversing Entries

question 14

Multiple Choice

Reversing entries

• A)Are required by CRA.
• B)Are optional.
• C)Fix errors in journal entries.
• D)Are not posted to the ledger.
• E)Are mandatory.

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Definitions:

Tennessee Court Of Appeals

An intermediate appellate court in Tennessee that reviews decisions from lower courts.

Lease

A contractual agreement where one party, the lessor, grants the other party, the lessee, the right to use an asset for a specified period in exchange for payment.

Illusory Promise

A statement that appears to be a promise but, upon closer examination, offers no commitment or assurance to act.

Option Contract

An agreement whereby the offeree gives the offeror a piece of consideration in exchange for the offeror’s agreement to hold the offer open for the specified period of time.