Reversing entries make possible the entering of the transactions of the succeeding accounting period in a routine manner.

Question

Quizplus · Accepted Answer

Reversing entries are made at the beginning of an accounting period to cancel out certain adjusting entries made at the end of the previous accounting period. This makes it easier to record transactions in the new period as it eliminates the need to account for the previous period's adjusting entries.

Reversing Entries Make Possible the Entering of the Transactions of the Succeeding