In the general journal, reversing entries are dated as of
A)any time before the end of the fiscal period.
B)the first day of the new fiscal period.
C)any day during the month of the new fiscal period.
D)the last day of the old fiscal period.

Question

Quizplus · Accepted Answer

Reversing entries are dated as of the first day of the new fiscal period. This is done to cancel out previously recorded entries and to ensure that accruals and deferrals are properly accounted for in the new period. By dating the reversing entry on the first day of the new period, it is clear which transactions have been reversed and ensures that the correct balance is reflected in the accounts.

In the General Journal, Reversing Entries Are Dated as of