Reversing entries are used in conjunction with ________.
A)accrual-type adjustments
B)closing entries
C)GAAP
D)Unearned Revenue and Prepaid Rent

Question

Quizplus · Accepted Answer

Reversing entries are used to undo accrual-type adjustments made in the previous accounting period. This allows for a clearer picture of the current period's transactions and makes the adjusting process smoother. Reversing entries are not used with closing entries or GAAP, and while they may apply to Unearned Revenue and Prepaid Rent, they are not used exclusively for these accounts.

Reversing Entries Are Used in Conjunction with ________