Question

All of the following regarding reversing entries are true except______________.a. Reversing entries are dated the first day of the new accounting period.b. Reversing entries are used to simplify a company's record keeping.c. Reversing entries should not be the exact opposite of previous period adjusting d. Reversing entries are optional.e. Reversing entries are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at the end of the previous accounting period.

Answer 1

Answer:

The answer is "option C"

Explanation:

Reversing entries is made at the commencement of a reversal or terminate accounting cycle adjustment of diary entries announced at the end of the past financial reporting period are called opposite entries, in the given statement except for "option c" all are correct, that can be described as follows:

• In option a and option b, It record all entries in the new account period, which is easy to use in the organization.
• option d and options e both are correct because these entries are optional, it responds on accrued set of data, that helps to adjust the previous data.