Reversing Entries Should Not Be Made for

question 115

Multiple Choice

Reversing entries should not be made for

• A) adjusting entries related to estimated items such as depreciation.
• B) adjusting entries that create accrued revenues to be collected in the next accounting period.
• C) adjusting entries that create accrued expenses to be paid in the next accounting period.
• D) adjusting entries related to prepayments of costs initially recorded as expenses.

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Definitions:

Proxy

A proxy is an authorization given by a shareholder or other party to represent them and vote on their behalf in a corporate or other formal meeting.

Shareholders' Meeting

A gathering of a corporation's shareholders, held to discuss the company's performance, elect the board of directors, and make decisions on major company issues.

Embezzlement

The act of dishonestly withholding or misappropriating funds or assets that have been entrusted to someone's care, typically in a work or official capacity.

Personal Liability

The legal responsibility of an individual to compensate for harm or loss caused by their actions or negligence.