Reversing entries:A) Are necessary when journal entries have been incorrectly recorded.B) Are a required step in the accounting cycle.C) Will often result temporarily in abnormal account balances in some accounts.D) Are required only if the company uses accounting software to record journal entries.E) Must be made before preparing the post-closing trial balance.

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Sandra Lyons · Accepted Answer

Final Answer : C, Explanation :  Reversing entries are made to undo or cancel out adjusting entries made in the prior period. As a result, they will often result in abnormal account balances in some accounts temporarily until the adjusting entries are made again in the current period. They are not necessary when journal entries are incorrectly recorded, but rather when adjusting entries have been made that need to be reversed. They are a required step in the accounting cycle and must be made before preparing the post-closing trial balance. They are not required only if the company uses accounting software, as they can be made manually as well.

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