Reversing Entries Are Used in Conjunction with ________

question 33

Multiple Choice

Reversing entries are used in conjunction with ________.

• A)accrual-type adjustments
• B)closing entries
• C)GAAP
• D)Unearned Revenue and Prepaid Rent

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, remaining constant regardless of business activity.

Sales Revenue

The total amount earned from the sale of goods or services before any costs or expenses are deducted.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and can be easily quantified and allocated to that product.

Break-even Point

The production level at which total revenues equal total expenses, and there is neither profit nor loss.