A Reversing Entry Is

question 34

Multiple Choice

A reversing entry is:

• A)a journal entry used to close the temporary accounts after preparation of financial statements.
• B)a special journal entry used to make the adjustments that took place after preparing the trial balance.
• C)a special journal entry that eases the burden of accounting for transactions in the next period
• D)a journal entry passed at the end of an accounting period to match assets with liabilities.

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Definitions:

Fixed Dividend

A specified amount of money paid regularly by a company to its shareholders out of its profits or reserves.

Dividend Growth

The annualized percentage rate of growth of a company's dividends per share.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that has precedence over common stock dividends.

Capital Gains Yield

The price appreciation component of a stock's total return, calculated as the increase in the stock price divided by the initial price of the stock.