What is a key characteristic of reversal entries in accounting?

The correct choice highlights that reversal entries are specifically made to correct prior entries that were recorded on the wrong side of the account. This is a fundamental aspect of the accounting process, as it ensures that the financial records accurately represent the true nature of transactions.

Reversal entries are commonly used at the beginning of a new accounting period. For instance, if an expense was incorrectly recorded as a revenue, a reversal entry would be made to negate this mistake, effectively shifting the amounts to the correct accounts. This practice helps maintain the integrity of financial statements and ensures that all transactions are properly accounted for.

The other options do not accurately describe the primary function of reversal entries. While entries might affect the trial balance, they are not specifically detected by it, and reversal entries are not primarily focused on correcting errors in both sides of the transaction but rather correcting incorrect postings on individual accounts. Additionally, reversal entries do not inherently indicate that there was an error; instead, they are a procedural step used when correcting previously recorded transactions.