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A reversing entry is the exact opposite of an adjusting entry made in a previous period. is made when a business disposes of an asset it previously purchased. is made when a company sustains a loss in one period and reverses the effect with a profit in the next period. reverses entries that were made in error.

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Answer: A reversing entry: "is the exact opposite of an adjusting entry made in a previous period.".

Explanation: Reversion entries are an end-of-the-year technique that involves the reversal, on the first day of the new accounting period, of those end-of-year adjustment entries that cause expenses or income and therefore will result in payments or cash receipts. Its purpose is to allow company personnel to record routine transactions in a standard manner without referring to previous adjustment entries.

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