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:

Office Supplies

Items and materials used in offices for daily operations, including paper, pens, and other stationery.

Miscellaneous Expense

General ledger accounts for expenses that are not sufficiently large or regular enough to be allocated to specific expense categories.

Bank Statement

A monthly document provided by a bank detailing all transactions in a customer's account for a given period.

Note Receivable

A financial asset representing a written promise from a borrower to pay a certain sum of money to the lender at a future date.