A Reversing Entry

question 180

Multiple Choice

A reversing entry

• A)reverses entries that were made in error.
• B)is the exact opposite of an adjusting entry made in a previous period.
• C)is made when a business disposes of an asset it previously purchased.
• D)is made when a company sustains a loss in one period and reverses the effect with a profit in the next period.

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Definitions:

Pay Grade Categories

Divisions or levels in a pay scale that determine the salary range for different positions within an organization.

Benchmarking

The practice of comparing business processes and performance metrics to industry bests or best practices from other companies.

Factor Analysis

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.

Total Compensation System

The complete package of financial and non-financial benefits provided to employees, including salaries, bonuses, health insurance, and retirement plans.