In general, all adjusting entries for prepaid items for which the original amount was entered in a revenue or expense account and for all accrued items should be reversed.

Question

Quizplus · Accepted Answer

Adjusting entries for prepaid items and accrued items are reversed to bring the balances of these accounts back to their original amounts at the beginning of the next accounting period.

In General, All Adjusting Entries for Prepaid Items for Which