A reversing entry
A) reverses entries that were made in error.
B) is the exact opposite of an adjusting entry made in a previous period.
C) is the same as the adjusting entry made in a previous period.
D) is made when a company sustains a loss in one period and reverses the effect with a profit in the next period.

Question

Quizplus · Accepted Answer

A reversing entry is made at the beginning of a new accounting period and is the exact opposite of an adjusting entry made in the previous period. This simplifies the recording of subsequent transactions by eliminating the need for certain adjustments.

A Reversing Entry