Asked by Kevin Nguyen on Jul 13, 2024
Verified
A reversing entry reverses the effects of an adjusting entry from the previous period.
Reversing Entry
An accounting entry made at the beginning of an accounting period that reverses or cancels out an adjusting entry made in the previous period.
Adjusting Entry
An entry made in the accounts to adjust revenues or expenses that have been accrued, deferred, or estimated.
- Understand the role of reversing entries in accounting.
Verified Answer
JG
Jasmine GriffinJul 14, 2024
Final Answer :
True
Explanation :
A reversing entry is made in the current period to reverse the effects of an adjusting entry made in the previous period so that the accounts can be recorded accurately in the new period.
Learning Objectives
- Understand the role of reversing entries in accounting.