A correcting entry
A) must involve one statement of financial position account and one income statement account.
B) is another name for a closing entry.
C) may involve any combination of accounts.
D) is a required step in the accounting cycle.

Question

Quizplus · Accepted Answer

A correcting entry may involve any combination of accounts and is made to correct a mistake in a previous transaction. It is not necessarily a closing entry and is not always required in the accounting cycle.

A Correcting Entry