A Reversing Entry ________

question 94

Multiple Choice

A reversing entry ________.

• A)is required by GAAP
• B)is dated the last day of an accounting period
• C)exactly resembles the prior adjusting entry prepared in the books
• D)switches the debit and the credit of a previous entry

---

Definitions:

Sales

The revenue a company earns from selling goods or services to customers within a financial period.

Comprehensive Analysis

An extensive evaluation or assessment of a situation, system, or financial condition considering all relevant factors and data.

Horizontal Analysis

A financial analysis technique that compares historical data, such as financial statements, over a series of periods to identify trends and growth patterns.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) is represented as a proportion of the total account.