A Reversing Entry Is ________

question 147

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 prepared at the end of an accounting period to match assets with liabilities

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Definitions:

Federal Court Jurisdiction

The authority granted to federal courts to hear and decide cases based on subject matter or parties involved.

Commercial Activity

Business operations or actions undertaken for the purpose of generating profit.

Expropriation

The act of a government taking privately owned property to be used for public purposes, usually with compensation to the owner.

Public Purpose

Concise definition: The rationale behind legislative actions or government spending which must benefit the public at large, rather than specific individuals or groups.