A compound journal entry is
A) A journal entry that has three or more debits and three or more credits
B) A journal entry that affects at least three account
C) A journal entry that affects at least four accounts
D) A journal entry involving at least two accounting periods
E) A journal entry involving only two ledger accounts

Question

Quizplus · Accepted Answer

CA compound journal entry is one that affects at least three accounts, which can be a mix of more than two debits or credits, thus making both B and C correct. It does not necessarily have to involve three or more debits and credits specifically, nor does it have to span multiple accounting periods or involve only two ledger accounts.

A Compound Journal Entry Is