A Reversing Entry Is ________

question 147

Multiple Choice

A reversing entry is ________.

• A) a journal entry used to close the temporary accounts after preparation of financial statements
• B) a special journal entry used to make the adjustments that took place after preparing the trial balance
• C) a special journal entry that eases the burden of accounting for transactions in the next period
• D) a journal entry prepared at the end of an accounting period to match assets with liabilities

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Definitions:

Negotiability

The characteristic of a written document (such as a check or bill of exchange) that ensures its transferability by endorsement or delivery.

Oral Agreement

An agreement or contract that is made through spoken communication between parties, rather than in written form, but is still legally binding.

Casino Credit

A line of credit extended by a casino to a patron, allowing them to gamble without using cash.

Bad Checks

Checks that cannot be processed because the account on which they were drawn lacks sufficient funds, leading to legal and financial consequences for the issuer.