Which of the following adjusting entries would not be reversed in the following accounting period?
A)an entry that recognized an accrued expense of the current period
B)an entry that allocated the expired portion of a long-lived asset to the current year's income statement
C)an entry that transferred a portion of a revenue account to a liability account
D)an entry that recognized an accrued revenue earned during the current period

Question

Quizplus · Accepted Answer

Adjusting entries that allocate the expired portion of a long-lived asset to the current year's income statement, also known as depreciation or amortization, do not get reversed in the following accounting period. All other types of adjusting entries listed in the options (recognition of accrued expenses or revenues, and transferring revenue to a liability account) are typically reversed in the following period.

Which of the Following Adjusting Entries Would Not Be Reversed