XACC 280 Week 5 DQ 1

Question:
What are reversing entries and why are they required? What would happen if reversing entries were not made? What transactions might require reversing entries? What transactions might not require reversing entries?
Response 1
According to Weygandi, Kimmel, and Kieso (2008), Reversing entries is an entry made at the beginning of the next accounting period, which is the exact opposite of the adjusting entry made in the previous period & Reversing entries are the opposite of the adjusting entries made in the preceding period (p. 172).
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