All of the Following Regarding Reversing Entries Are True Except

question 26

Multiple Choice

All of the following regarding reversing entries are true except:

• A) Reversing entries are used to simplify a company's recordkeeping.
• B) Reversing entries are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at the end of the previous accounting period.
• C) Reversing entries are dated the first day of the new accounting period.
• D) Reversing entries are optional.
• E) Reversing entries should not be the exact opposite of previous period adjusting entries.

---

Definitions:

Hepatitis C

A viral infection that causes liver inflammation, sometimes leading to serious liver damage.

Sinus Infections

Inflammations or infections of the sinus cavities, often causing congestion, pain, and pressure in the facial area.

Rheumatoid Arthritis

A chronic inflammatory disorder affecting the joints, characterized by pain, swelling, and decreased mobility.

Echinacea

A genus of herbaceous plants used in herbal medicine, believed to boost the immune system.