The purpose of reversing entries is to:
A) Make certain that only permanent accounts are carried forward into the next accounting period.
B) Complete a required step in the accounting cycle.
C) Correct errors made in previous journal entries.
D) Ensure that closing entries have been properly posted to the ledger accounts.
E) Simplify a company's recording of certain journal entries in the future.

Question

Quizplus · Accepted Answer

Reversing entries are used to simplify the recording of future transactions by eliminating the need to make complex adjusting entries. They are typically made at the beginning of a new accounting period to reverse certain adjusting entries made in the previous period.

The Purpose of Reversing Entries Is To