Although It May Look Unusual, When Preparing a Reversing Entry

question 128

Multiple Choice

Although it may look unusual, when preparing a reversing entry you may create

• A) a debit balance in an asset account.
• B) a credit balance a liability account.
• C) no change; all accounts remain in the same balance.
• D) a credit balance in an expense account.

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Definitions:

Government Agency

An administrative unit of the government tasked with specific functions and duties.

Spacecraft

A vehicle designed for travel or operation in outer space.

Export Tax

A tax imposed by a government on goods and services that are sold to other countries, designed to regulate trade.

Unconstitutional

Describes actions or laws that are not in accordance with the constitution of a given jurisdiction.