Reversing Entries

question 48

Multiple Choice

Reversing entries:

• A)Are necessary when journal entries have been incorrectly recorded.
• B)Are a required step in the accounting cycle.
• C)Will often result temporarily in abnormal account balances in some accounts.
• D)Are required only if the company uses accounting software to record journal entries.
• E)Must be made before preparing the post-closing trial balance.

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Definitions:

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An alteration of visual perception where the appearance of objects is changed from their true shape, size, or position.

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The process of deriving logical conclusions from premises known or assumed to be true, based on evidence and reasoning.

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The process of organizing and minimizing unnecessary items in a space to make it more orderly and functional.