A reversing entry should not be made for an adjusting entry to record
A)an accrued income item that will involve future cash receipts.
B)depreciation.
C)the accrued salaries.
D)an accrued expense item that will involve future cash payments.

Question

Quizplus · Accepted Answer

Reversing entries are made to cancel out previously recorded adjusting entries at the start of a new accounting period. Depreciation is a non-cash expense and does not involve any future cash payments. Therefore, a reversing entry should not be made for the adjusting entry to record depreciation.

A Reversing Entry Should Not Be Made for an Adjusting