Reversing entries are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at the end of the prior accounting period.
Reversing entries are optional.
Another name for temporary accounts is:
A) Real accounts.
B) Contra accounts.
C) Accrued accounts.
D) Balance column accounts.
E) Nominal accounts.
When closing entries are made:
A) All ledger accounts are closed to start the new accounting period.
B) All temporary accounts are closed but not the permanent accounts.
C) All real accounts are closed but not the nominal accounts.
D) All permanent accounts are closed but not the nominal accounts.
E) All balance sheet accounts are closed.