A reversing entry is:
A)a journal entry used to close the temporary accounts after preparation of financial statements.
B)a special journal entry used to make the adjustments that took place after preparing the trial balance.
C)a special journal entry that eases the burden of accounting for transactions in the next period
D)a journal entry passed at the end of an accounting period to match assets with liabilities.

Question

Quizplus · Accepted Answer

A reversing entry is made at the beginning of a new accounting period to reverse certain adjusting entries made in the previous period, simplifying the recording of future transactions.

A Reversing Entry Is