Entries made at the beginning of the next accounting period to reverse the effect of various adjustments, are called:
A) adjusting entries.
B) contrary entries.
C) reversing entries.
D) negative entries.

Question

Quizplus · Accepted Answer

Reversing entries are made at the beginning of the next accounting period to reverse the effect of various adjustments made in the previous period. This helps in simplifying the accounting process and ensures that the correct balances are carried forward into the new accounting period.

Entries Made at the Beginning of the Next Accounting Period