The purpose of reversing entries is to: Multiple Choice Make certain that only permanent accounts are carried forward into the next accounting period. Simplify a company's recordkeeping Ensure that closing entries have been properly posted to the ledger accounts. Correct errors made in previous journal entries. Complete a required step in the accounting cycle.

The purpose of reversing entries is to:<br /><br />Simplify a company's recordkeeping.<br /><br />Reversing entries are made at the beginning of an accounting period to reverse certain adjusting entries made in the previous period. This simplifies the recording of transactions in the new period by eliminating the need to remember which adjustments were made previously.