A Reversing Entry Should Not Be Made for an Adjusting

question 87

Multiple Choice

A reversing entry should not be made for an adjusting entry to record

• A)an accrued income item that will involve future cash receipts.
• B)depreciation.
• C)the accrued salaries.
• D)an accrued expense item that will involve future cash payments.

---

Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a specific input, keeping other inputs constant.

Profit-Maximizing Output

The level of production at which a firm can achieve the highest possible profit, considering its cost structure and the market price.

Wage Rate

The amount of compensation offered per unit time or piece of work to an employee.

Total Product

The total quantity of output produced by a firm from a given quantity of inputs.