Reversing Entries

question 55

Multiple Choice

Reversing entries:

• A) are necessary when journal entries have been incorrectly recorded.
• B) are a required step in the accounting cycle.
• C) will often result in abnormal account balances in some accounts.
• D) are required only if the company uses accounting software to record journal entries.
• E) must be made before preparing the post-closing trial balance.

Comprehend how artists convey themes through symbolism, structure, and composition in their work.

Understand the characteristics and types of managerial decisions in organizational settings.

Identify the steps involved in the decision-making process and their sequence.

Differentiate between programmed and nonprogrammed decisions.

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Definitions:

Double-Entry Accounting

A system of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account.

Debits

Accounting entries that represent an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Credits

Recognition or acknowledgment for something received or accomplished, often used in finance to denote money received or a decrease in liabilities.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of economic benefits including money, goods, or services.