Reversing Entries Are Used to Reverse Two Type of Adjusting

question 81

Multiple Choice

Reversing entries are used to reverse two type of adjusting entries:

• A) accrued revenue and unearned revenues.
• B) prepayments and unearned revenues.
• C) accrued revenue and expenses.
• D) prepayments and accrued expenses.

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Definitions:

Customer Value

The perception of what a product or service is worth to a customer versus the possible alternatives.

Nonmonetary Benefits

Advantages or perks received from a job, purchase, or transaction that do not involve financial compensation, such as satisfaction, convenience, or health improvements.

Monetary Benefits

The financial gains one receives from employment or investment, including salary, dividends, or interest.

Wholesalers

Businesses that sell goods in large quantities at lower prices, primarily to retailers or other businesses, rather than directly to consumers.