Which of the following entries is a general journal entry that is the exact opposite of a previously completed adjusting entry?
A) A Closing Entry
B) A Working Adjustment
C) A Reversing Entry
D) A Temporary Entry

Question

Quizplus · Accepted Answer

A reversing entry is an exact opposite of a previously completed adjusting entry. It is made on the first day of the new accounting period to cancel out the effect of the previous adjusting entry. This is done to simplify the accounting process and ensure that the correct balances are carried forward to the new period. The other options (A, B, and D) do not serve this specific purpose.

Which of the Following Entries Is a General Journal Entry