Which of the Following Categories of Adjusting Entries Are Always

question 12

Multiple Choice

Which of the following categories of adjusting entries are always reversed when an entity uses reversing entries in their accounting system?
I. Accrued Expenses
II. Accrued Revenue
III. Depreciation

• A) All of these.
• B) I and III only.
• C) I and II only.
• D) III only.

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Definitions:

Company's Accounts

Financial records that detail the financial transactions, assets, liabilities, and equity of a company.

Accounts Payable

The amounts a company owes to suppliers or vendors for goods or services received but not yet paid for.

Short-Term Note

A debt instrument with a short maturity period, typically less than a year, used for business financing or temporary cash needs.

Interest Revenue

Income that a company earns from investments that pay interest, including savings accounts, bonds, or loans provided to others.