You now create the following reversing entry at the beginning of the February accounting period. The policyowner of an adjustable life policy wants to increase the death benefit. l!! c. The steps in the accounting cycle are performed in sequence. Which of the following statements is correct regarding this change?1. Which of the following statements about the closing process is correct? B. All adjusting entries B. a. The accounting cycle includes journalizing transactions and posting to ledger accounts. Reversing entries provide a way to guard against oversights, eliminate the review of accounting records, and simplify the entry made in the new period. The major financial statements presented by a company include all of the following statements, except for the a. balance sheet b. statement of changes in financial position c. income statement d. statement of cash flows ACCO 202 (Asignación #1) - Prof. Carlos Alvarez 1-1 5. Reversing entries are required by Generally Accepted Accounting… A manager might reject a proposal using ROI that the manager would accept using residual income. The recording of reversing entries is a mandatory step in the accounting cycle. (Deferrals do not … Dec 31, Frank Voris Co. correctly made an adjusting entry to recognize $2,000 of accrued salaries payable. Reversing entries are required by Generally Accepted Accounting Principles b. c. Correcting entries d. Reversing entries 159. So if we combine them ($1,000 debit and 3,000 credit), then we'll end up with $2,000 Interest Income which is the correct amount to be recognized in 2020. C. Adjusting entries for depreciation and doubtful accounts are never reversed. Which one of the following statements concerning the accounting cycle is incorrect? They reverse the effect of credit transactions B. Which of the following statements is/are correct? Between May 1 when the reversing entry is made and May 10 when the payroll entry is recorded, the company's total liabilities and total expenses are understated. Managers will be more likely to pursue projects that will benefit the entire company when being evaluated on ROI instead of residual income. ( ) A. b. A. Deferrals entered in the statement of financial position accounts make reversing entries unnecessary. All of the following regarding reversing entries are true except: a) reversing entries are dated the first day of the new accounting period. Reversing entries are dated December 31, the end of the fiscal year. Accrued wages C. Prepaid insurance D. Depreciation 15. Reversing entries are required by Generally Accepted Accounting Principles. !J Read obo\lt 11115 The Withdrawal's account balance w111 be used in preparing the statement of owner's equity. Reversing entries are optional accounting procedures which may sometimes prove useful in simplifying record keeping. Which of the following statements is not correct? b) In reverse phase chromatography the wanted protein can be selectively eluted by solutions of different hydrophobicities or ionic strengths. The correcting entries combined with the original erroneous entries reflect the correct amount ($150 + $50 = $200). Which of the following statements is not correct? To illustrate reversing entries, let's assume that a retailer uses a temporary employment agency service to provide workers from December 15 to December 29. A Closing entries are recorded at the end of each reporting period which could be monthly, quarterly. B) Fixed assets acquired through proprietary and fiduciary funds are reported in the Statement of Net Assets of those funds. C) A reversing entry is the exact opposite (the reverse) of the adjustment. Adjusting entries are most commonly used in accordance with the The accounting cycle includes only one optional step. ~Your answer Is correct! a. We said that reversing entries … The death benefit cannot be […] All of the following statements about the post-closing trial balance are correct except it. Solution for Which of the following statements concerning reversing entries is true? a) Affinity chromatography involves the attachment to the column matrix of groups or molecules known that specifically bind to the wanted protein. b. provides evidence that the journalizing and posting of closing entries have been properly completed. c. contains only permanent accounts. Assuming the correct reversing entry was made on Jan 1, the Jan 8th entry credits Cash $3,400 and debit(s): a. Important Links. Which of the following statements concerning reversing entries is true? Using everyday knowledge, which of the following statements is an if-then statement whose reverse is also correct? Use Code "Newclient" a. Reversing entries are most often used with accrual-type adjustments c. Reversing entries are dated December 31, the end of the fiscal year d. Reversing entries are recorded before adjusting entries. On January 25 the company will write a check to pay those commissions. Which of the following statements regarding reversing entries is false? To avoid having two entries for December's commissions, it is common practice on the first day of the month following the accrual adjusting entry to record a reversing entry. Which of the following statements is a correct description of reversing entries? There are two ways to make correcting entries: reverse the incorrect entry and then use a second Reversing entries will be dated as of the first day of the accounting period immediately following the period of the accrual-type adjusting entries. Illustrative Entries. Future and present value tables . B. C. The entry to record depreciation expense involves a credit to the asset being depreciated. In other words, for a company with accounting periods which are calendar months, an accrual-type adjusting entry dated December 31 will be reversed on January 2. A. A) Worksheet entries are posted to the general ledger when preparing the government-wide statements and then reversed at the beginning of the next fiscal year. Reversing entries, or reversing journal entries, are journal entries made at the beginning of an accounting period to reverse or cancel out adjusting journal entries made at the end of the previous accounting period. Example of Reversing Entries. c. Reversing entries change amounts reported in the statement of financial position for the previous period. All accruals should be reversed. Order now and Get 10% Discount! The first example does not utilize reversing entries.An adjusting entry was made to record $2,000 of accrued salaries at the end of 20X3. "Looking for a Similar Assignment? or annually. a. B After closing entries are posted, the balances of the income statement accounts will be zero. • If a parent corporation loses its S corporation status, the Q Sub election will terminate as of the last day of the previous tax year. Includes financial and managerial terms. b. b) reversing entries are not the exact opposite of adjusting entries. Answers: 3 Show answers. Accountants must make correcting entries when they find errors. If the TV is unplugged, then the TV will not turn on. a. 14. Account Types. Glossary. Adjusting entries, also called adjusting journal entries, are journal entries made at the end of a period to correct accounts before the financial statements are prepared. Consider the following alternative sets of entries. Which of the following statements is true? Time Value of Money. Examples of journal entries for numerous sample transactions. Reversing entries are made at the end of the next accounting period, after recording regular transactions of the period. d. proves that all transactions have been recorded. These entries are often used to account for expenses on an accrual or deferred basis. If a parent corporation loses its S corporation status, thereby terminating the Q Sub election, the former Q Sub will be […] Example 2: Reversing entries Let’s say you bought a new piece of equipment for $2,000. D. A project that is not acceptable usi. Salaries Payable $1,400, Salaries Expense $2,000. 41. Reversing entries apply to A. A reversing entry is a journal entry to “undo” an adjusting entry. a. shows that the accounting equation is in balance. Which of the following statements is correct? Reversing entries provide a way to guard against oversights, eliminate the review of accounting records, and simplify the entry made in the new period. Well, in the reversing entry at the beginning of the period, Interest Income was already debited for $1,000. Which of the following statements concerning reversing entries is true? Which of the following statements about column chromatography is not correct? The entry to record depreciation expense involves a credit to a liability. If the light bulb was recently on, then the light bulb is hot. The death benefit can be increased only by exchanging the existing policy for a new one.2. This is the last step in the accounting cycle. The temp agency will bill the retailer on January 6 and the retailer is required to pay the invoice by January 10. Reversing entries are made to reverse the effect of certain adjustments. Which of the following adjusting entries involves the recognition of an accrued expense? Reversing entries are most often used with accrual-type adjustments. Reversing entries are recorded before adjusting entries. b. This is the fourth step in the accounting cycle. Review the following statements and select which is correct regarding a work sheet and formal financial statements. b. Another question on Business. If an ambulance has emergency lights on, then cars on the road pull over. Reversing entries reverse an adjusting entry made at the end of the previous accounting period if the adjusting entry increased an asset or a liability account.. For example, the following review of last period’s adjusting entries will allow us to see if reversing entries would simplify transactions for the new accounting period. On Jan 8th, total salaries of $3,400 were paid. The entry to record depreciation expense involves a credit to a contra-asset. Typical financial statement accounts with debit/credit rules and disclosure conventions. Very good. Which of the following statements is not correct? The totals of the Balance Sheet & Owners Equity columns will be equal to revenues Reversing entries are journal entries that are created to reverse adjusting entries at the start of the next accounting cycle. This temporary inaccuracy in the books is acceptable only because financial statements are not prepared during this period. This leaves the original $18,000 expense in the income statement in January, but now creates a negative $18,000 expense in the income statement in February. Multiple Choice. Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition) Edit edition. Debit: Credit: Accrued expenses: 18,000 Expense : 18,000 : But we are not done yet. Which of the following statements is correct? 1. The death benefit can be increased by providing evidence of insurability.3. 25.Which of these statements relating to reversing entries is correct? Reversing entries apply to all of the following, except A. 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