An Example of a Reclassification Entry Would Be an Entry

question 21

Multiple Choice

An example of a reclassification entry would be an entry to:

• A) increase the allowance for doubtful accounts when it was discovered that a customer had filed for bankruptcy.
• B) increase the income tax liability account when it was discovered that the tax rate would be higher than originally estimated.
• C) reduce inventory when the client failed to write down its obsolete raw materials.
• D) change material credit balances in accounts receivable accounts to accounts payable accounts.

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Definitions:

Sikhs

Followers of Sikhism, a monotheistic religion founded in the 15th century in the Indian subcontinent, characterized by beliefs in equality, community service, and the importance of honest living.

Fundamentalism

A movement designed to revitalize faith by returning to traditional religious practices.

Functionalist View

A perspective in sociology that sees society as a complex system whose parts work together to promote solidity and stability.

Social Change

Transformations or shifts in the structure and functioning of a society over time.