A Reversing Entry Could Be Used If

question 85

Multiple Choice

A reversing entry could be used if

• A) there is an adjusting entry.
• B) the adjusting entry increases an asset or liability account.
• C) the adjusting entry account did not have a previous balance.
• D) all of these were true.
• E) none of these were true.

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Definitions:

Opportunity Costs

The cost of an alternative that must be foregone to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

Make Total Cost

An approach to calculate the comprehensive cost of manufacturing a product, including raw materials, labor, and overheads.

Buy Total Cost

The total expense incurred to purchase an item or service, including the purchase price and any additional fees or expenses.

Variable Expenses

Costs that vary in total in direct proportion to changes in business activity levels or volumes, such as sales commissions or raw material costs.