Reversing entries are: a the exact opposite of a prior adjusting entry b dated the last day of the new period c required according GAAP d expensive to record and time consuming Homework Study.com
Contents: Fundamentals of Financial Management, Concise Edition The Accounting Cycle Reversing Entries Period Costs = Period Expenses The amount of insurance premiums that have not expired as of the balance sheet date should be reported in an asset account such as Prepaid Insurance. Once the product or service is delivered, unearned revenue becomes revenue on…