Reversing entries:
A) Will often result temporarily in abnormal account balances in some accounts.
B) Must be made before preparing the post-closing trial balance.
C) Are a required step in the accounting cycle.
D) Are required only if the company uses accounting software to record journal entries.
E) Are necessary when journal entries have been incorrectly recorded.

Question

Quizplus · Accepted Answer

Reversing entries can temporarily create abnormal balances because they reverse certain adjusting entries made at the end of the previous period.

Reversing Entries