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.

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Definitions:

Total Amount Financed

In a loan, the total sum of money provided, including the principal and any additional fees or charges by the lender.

Payments Due Dates

Specific dates by which payments for utilities, loans, credit cards, and other financial obligations are required to be made.

National Highway Safety Administration

A federal agency responsible for achieving the highest standards of safety on the nation's roads and highways.

Motor Vehicles

Vehicles powered by an internal combustion engine or electric motor and are designed for transportation on roads.