The primary objective of reversing entries is to
A)place the expenses for the current period in the proper accounts.
B)simplify the bookkeeping associated with accruals from the prior period.
C)transfer the balance of the expense accounts to the owner's Capital account and set the accounts equal to zero.
D)correct errors.

Question

Quizplus · Accepted Answer

Reversing entries are made at the beginning of an accounting period to simplify the bookkeeping associated with accruals from the prior period. They help in preventing duplication or omission of adjusting entries in the next period. It ensures the accurate calculation of revenue, expenses, and profit or loss for the period.

The Primary Objective of Reversing Entries Is to