Reversing entries are used in conjunction with ________.
A) accrual-type adjustments
B) deferred revenues
C) deferred expenses
D) Unearned Revenue and Prepaid Rent

Question

Quizplus · Accepted Answer

Reversing entries are used in conjunction with accrual-type adjustments. These entries are made at the beginning of an accounting period to reverse the effect of certain adjusting entries that were made at the end of the previous accounting period. This ensures that the correct amounts are recorded in the current period and that the financial statements accurately reflect the company's financial position. Reversing entries are not typically used with deferred revenues, deferred expenses, unearned revenue, or prepaid rent.

Reversing Entries Are Used in Conjunction with ________