Which of the Following Statements Is True

question 33

Multiple Choice

Which of the following statements is true?

• A) reversing entries are compulsory.
• B) all accruals must be reversed.
• C) reversing entries are optional and are only made to simplify the recording process at the start of the new accounting period.
• D) reversing entries are made on the last day of the financial year.

---

Definitions:

Possessor

A person or entity that has physical control or occupancy of property, but not necessarily legal ownership.

Negligence

A legal concept referring to the failure to exercise a level of care that a reasonably prudent person would in similar circumstances, leading to harm or damage.

Omission

The act of leaving something out or not including something.

Reasonable Person

A hypothetical individual who exercises average care, skill, and judgment in conduct and is often used as a standard for determining negligence.