A reversing entry should never be made for an adjusting entry that
A) accrues unrecorded revenue.
B) adjusts expired costs from an asset account to an expense account.
C) accrues unrecorded expenses.
D) adjusts unexpired costs from an expense account to an asset account.

Question

Quizplus · Accepted Answer

Adjusting entries for expired costs from an asset account to an expense account are made to record the consumption of an asset over a period. These adjustments reflect the actual expense incurred during the period and do not require reversal because they represent real economic events that do not reverse in the next period.

A Reversing Entry Should Never Be Made for an Adjusting