Reversing entries are used to reverse two type of adjusting entries:
A) accrued revenue and unearned revenues.
B) prepayments and unearned revenues.
C) accrued revenue and expenses.
D) prepayments and accrued expenses.

Question

Quizplus · Accepted Answer

Reversing entries are typically used to reverse the adjusting entries for accrued revenues and accrued expenses. This simplifies the accounting process in the next period by negating the impact of the initial accruals, making it easier to record actual revenues or expenses when they occur.

Reversing Entries Are Used to Reverse Two Type of Adjusting