Which of the following statements is FALSE about reversing entries?
A) They are not required by GAAP.
B) They are used for convenience and to save time.
C) The reversing entry is exactly the opposite of a prior adjusting entry.
D) The reversing entry is posted on the last day of the month.

Question

Quizplus · Accepted Answer

Reversing entries are made on the first day of the new accounting period, not the last day of the month. This is done to simplify the process of recording subsequent transactions and to ensure that the appropriate balances are carried forward. Options A, B, and C are all true statements about reversing entries.

Which of the Following Statements Is FALSE About Reversing Entries