Which of the Following Is the Correct Reversing Entry

question 42

Multiple Choice

Which of the following is the correct reversing entry?

• A) Depreciation Expense 1550
• Accumulated Depreciation 1550
• B) Interest Revenue 2350
• Interest Receivable 2350
• C) Salary Expense 1980
• Salary Payable 1980
• D) Income Tax Expense 2500
• Income Tax Payable 2500

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Definitions:

Economic Arguments

Debates or discussions centered on economic theories, principles, or effects of policies, often regarding fiscal matters such as taxation, spending, and regulation.

Shareholder Democracy

The concept that a company's direction should be influenced by its shareholders, often through voting on corporate matters based on the number of shares owned.

World Trade Organization

An international organization established to supervise and liberalize international trade, facilitating negotiation and enforcement of trade agreements among member countries.

North American Free Trade Agreement

A treaty among Canada, Mexico, and the United States that eliminated most tariffs and trade barriers between the countries, aiming to increase economic integration.