Which of the following could be recorded as a reversing entry?
A) Depreciation of building
B) Accrual of salary expense
C) Allocation of prepaid rent in the current period
D) Cash

Question

Quizplus · Accepted Answer

Reversing entries are typically used for accrued expenses and revenues at the beginning of a new accounting period. Among the options, the accrual of salary expense is a common example where a reversing entry can be applied to simplify the recording of actual expenses in the new period.

Which of the Following Could Be Recorded as a Reversing