Examlex
Which of the following statements is true?
Reversing Entries
Journal entries that are made at the beginning of an accounting period to reverse or cancel out adjusting journal entries made at the end of the previous accounting period.
Assets
Resources owned by a company that have economic value and can provide future benefits.
Liabilities
Liabilities are financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.
Reversing Entry
An accounting entry that is made at the beginning of an accounting period to reverse or cancel out a previously made adjusting entry.
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