Reversing entries are ________.
A) the exact opposite of a prior adjusting entry
B) dated the last day of the new period
C) required according to GAAP
D) expensive to record and time consuming

Question

Quizplus · Accepted Answer

Reversing entries are made at the beginning of a new period to reverse adjusting entries made in the prior period. They are the exact opposite of the prior adjusting entry, and are not required by GAAP, but are often used as a shortcut to facilitate the recording process. They are not expensive or time consuming to record, and are dated the first day of the new period, not the last.

Reversing Entries Are ________