Question

Question 5 2.5 pts

The reversing entry for Salaries is:

debit Salaries Expense; credit Salaries Payable.

debit Salaries Payable; credit Income Summary.

debit Salaries Expense; credit Accounts Payable.

debit Salaries Payable; credit Salaries Expense.

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Question 6 2.5 pts

Reversing entries are done when assets or liabilities are increasing and have no previous balance.

True

False

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Question 7 2.5 pts

Reversing entries are the opposite of closing entries.

True

False

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Question 8 2.5 pts

Not all adjusting entries can be reversed.

True

False

Answer 1

5.2.5

Ans: Option D

debit Salaries Payable; credit Salaries Expense.

6.2.5

Ans False

Reversing entry is commonly used in situations when either revenue or expenses were accrued in the preceding period, and you do not want the accruals to remain in the accounting system for another period.

7.2.5

Ans true

8.2.5

FALSE

The only types of adjusting entries that may be reversed are those that are prepared for the following: accrued income, accrued expense, unearned revenue using the income method, and prepaid expense using the expense method.