Which of the following could be recorded as a reversing entry?
A)Depreciation of building
B)Accrual of interest expense
C)Allocation of prepaid rent in the current period
D)Cash

Question

Quizplus · Accepted Answer

Accrual of interest expense could be recorded as a reversing entry because it involves reversing the previously recorded accrual entry for interest expense. This is often done to simplify the accounting process and ensure accurate financial statements. None of the other options listed require a reversing entry.

Which of the Following Could Be Recorded as a Reversing