Which of the Following Statements Relating to Reversing Entries Is

question 7

Multiple Choice

Which of the following statements relating to reversing entries is correct?

• A) Reversing entries are rarely used.
• B) Reversing entries are never appropriate for accrual type entries.
• C) Depreciation is an adjustment that requires reversing in the subsequent period.
• D) There are alternative ways of dealing with the effect of accruals in subsequent periods without using reversing entries.

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Definitions:

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