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