XACC 280\Week 5 - DQ 1 and 2 - 16560

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XACC 280\Week 5 - DQ 1 and 2

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An exact opposite of a journal entry is a reversing entry as which is made at the end of an accounting period and recorded at the beginning of the next accounting period. The revenue and expense recognition process is simplified with the use of reversing entries as it allows an accountant to record revenues and expenses according to GAAP. This is done by proper matching of expenses with relevant revenues and recording revenues when they are earned.