Reversing entries occur at the beginning of the accounting period and:

A) help to reduce potential errors.
B) simplify the bookkeeping associated with accruals from the prior period.
C) reverse the adjusting entries.
D) All of the above are correct.

Reversing Entries

Optional bookkeeping technique in which certain adjusting entries are reversed or switched on the first day of the new accounting period so that transactions in the new period can be recorded without referring back to prior adjusting entries.

Accruals

Accounting adjustments for revenues earned or expenses incurred which have not yet been received or paid, respectively.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances to their correct amounts.