Reversing entries are made at the beginning of the new accounting period in order to transfer all accruals and deferral items established by adjusting entries to nominal account that are to be used in recording transactions during the new period. True False

Reversing entries are made at the beginning of the new accounting period in order to transfer all accruals and deferral items established by adjusting entries to nominal account that are to be used in recording transactions during the new period. True False

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter16: Financial Statements And Closing Entries For A Corporation

Section16.5: Preparing A Post-closing Trial Balance

Problem 3AYU

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Question

Reversing entries are made at the beginning of the new accounting period in order to
transfer all accruals and deferral items established by adjusting entries to nominal account
that are to be used in recording transactions during the new period.

True

False

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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