Question

Which statement best describes the normal reversals functionality?Please choose the correct answer

1) Executes a transfer posting by resetting the transaction figures.
2) Executes an inverse posting by increasing the transaction figures.
3) Executes the inverse posting of a cleared document before resetting it.
4) Executes an inverse posting by resetting the transaction figures.

Answer 1

The correct answer is that the normal reversals functionality executes an inverse posting by resetting the transaction figures, which negates the original entry's impact.

Step-by-step explanation:

The statement that best describes the normal reversals functionality is Executes an inverse posting by resetting the transaction figures. This process is generally used in accounting and finance to correct or reverse an entry that was previously made in error.

A normal reversal creates a new posting that is the exact opposite of the original entry, effectively nullifying the impact of the first transaction on the accounting records. Rather than increasing, it resets the figures back to what they would have been if the original transaction had not occurred.