Which of the Following Statements Relating to Reversing Entries Is

question 29

Multiple Choice

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

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

---

Definitions:

Distribution Outlets

Points of sale or channels through which products are made available to customers.

Need-Satisfying Benefits

The advantages or positive outcomes that a product or service provides to fulfill the specific needs of a customer.

Information Overload

The state of being overwhelmed by the vast amount of information available, making it difficult to make decisions or focus effectively.

Strategic Planning

The process of defining a company's direction and making decisions on allocating its resources to pursue this strategy.