The use of reversing entries

Name: The use of reversing entries
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Reversing entries are optional and are used to simplify the recording of subsequent transactions. They are particularly useful for adjusting entries that are temporary in nature, such as accruals or deferrals. By reversing these entries at the beginning of the next accounting period, the accountant can avoid double counting the revenues or expenses when the actual invoice or bill is processed.

The Use of Reversing Entries