Reversing entries:
A) Are optional.
B) Are mandatory.
C) Correct errors in journal entries.
D) Are required by GAAP.
E) Are prepared on the worksheet.

Question

Quizplus · Accepted Answer

Reversing entries are optional and are used to simplify the process of recording transactions in the next accounting period by automatically reversing the effect of adjusting entries made in the current period. They are not mandatory and are not required by GAAP, but they can help reduce errors in subsequent periods by ensuring that adjusting entries are not accidentally duplicated. Reversing entries are typically prepared on the worksheet.

Reversing Entries