Reversing Entries

question 46

Multiple Choice

Reversing entries:

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

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Definitions:

Bias

A systematic error that occurs when a process leans towards a particular outcome, often leading to unfair results.

Resamples

The practice of randomly drawing samples from a dataset multiple times, each time potentially drawing the same observation more than once, to perform statistical inference.

Income

Money received, typically on a regular basis, for work or through investments.

Difference in Means

A statistical measure that evaluates the difference between the average values of two groups or sets.