Reversing Entries Can Be Made for Deferrals but Not for Accruals

question 103

True/False

Reversing entries can be made for deferrals but not for accruals.

---

Definitions:

Retained Earnings

The portion of a company's profits that is held or retained and saved for future use, investment, or to pay debt, instead of being paid out as dividends.

Statement Of Retained Earnings

A financial report that reveals the changes in retained earnings for a particular period of time.

December 31

Refers to the last day of the year, often associated with the end of the fiscal year for many companies.

Statement Of Retained Earnings

A financial report summarizing the changes in retained earnings for a specific period.