Compound entries
A) would include an entry to record the purchase of a computer for cash.
B) include at least two debits or two credits.
C) require that all credits be listed before the debits for entries affecting the statement of financial position.
D) should be broken into their component parts and recorded as simple entries.

Question

Quizplus · Accepted Answer

Compound entries include at least two debits or two credits. Option A describes a simple entry, option C is incorrect as the order of listing credits and debits depends on the nature of the transaction, and option D suggests breaking down compound entries into simple entries, which defeats the purpose of using compound entries to record complex transactions.

Compound Entries