Reversing entries can be made for accruals,but not for deferrals.

Question

Quizplus · Accepted Answer

Reversing entries are typically made for accruals in order to remove the impact of the accrual and reflect the actual transaction that occurred in the following accounting period. Deferrals, on the other hand, are typically adjusted by simply reversing the original entry made at the end of the accounting period. Therefore, reversing entries are not typically needed for deferrals.

Reversing Entries Can Be Made for Accruals,but Not for Deferrals