Which of the following statements is CORRECT?
A)Accounts being debited should always follow the accounts being credited in a compound entry.
B)Compound entries affect more than one debit and/or more than one credit.
C)All transactions require compound entries.
D)Compound entries include only debits.

Question

Quizplus · Accepted Answer

Compound entries affect more than one debit and/or more than one credit. It is not necessary for all transactions to require compound entries. Additionally, compound entries may include both debits and credits, not just debits. The order of accounts in a compound entry is not strict and can vary based on the nature of the transaction.

Which of the Following Statements Is CORRECT