Asked by
Arianna Tomczak
on Dec 17, 2024Verified
Which of the following adjustments may be reversed?
A) The adjustment to Record Depreciation Expense
B) The adjustment to Allocate Prepaid Insurance to the current period
C) The adjustment to Accrue Salaries Payable
D) The adjustment for Petty Cash replenishment
Reversing Adjustments
Reversing Adjustments are accounting entries made at the beginning of a new accounting period to cancel out adjusting entries made at the end of the previous period to simplify financial reporting.
Record Depreciation Expense
The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.
Allocate Prepaid Insurance
involves distributing the cost of insurance premiums over the period that the insurance coverage relates to, recognizing it as an expense over time rather than all at once.
- Acquire knowledge about the fundamentals of reversing entries and their practical applications.
Verified Answer
SC
Learning Objectives
- Acquire knowledge about the fundamentals of reversing entries and their practical applications.