Which of the following could be recorded as a reversing entry?
A) Depreciation of building
B) Accrual of interest expense
C) Allocation of prepaid rent in the current period
D) Correction of an error

Question

Quizplus · Accepted Answer

Accrual of interest expense can be recorded as a reversing entry because it is a temporary adjustment that is reversed in the next period to prevent double counting. Depreciation, allocation of prepaid rent, and correction of errors are not typically recorded as reversing entries.

Which of the Following Could Be Recorded as a Reversing