The Purpose of Reversing Entries Is To

question 14

Multiple Choice

The purpose of reversing entries is to:

• A) Make certain that only permanent accounts are carried forward into the next accounting period.
• B) Complete a required step in the accounting cycle.
• C) Correct errors made in previous journal entries.
• D) Ensure that closing entries have been properly posted to the ledger accounts.
• E) Simplify a company's recording of certain journal entries in the future.

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Definitions:

Soviet Union

A former federation of Communist republics that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR).

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Runoff

The portion of rainfall, melted snow, or irrigation water that flows across the ground's surface and is not absorbed into the soil, often reaching rivers, lakes, and oceans.

Increasing Numbers

A term indicating a situation where the quantity or amount of a certain entity is growing over time.