Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Compound entries can affect more than one debit and/or more than one credit. This is because they are used to record transactions that involve multiple accounts being debited or credited at the same time. Therefore, statement D is correct. Statements A and B are incorrect because not all transactions require compound entries, and compound entries can include both debits and credits. Statement C is also incorrect because the order in which accounts are listed in a compound entry does not affect its validity.

Which of the Following Statements Is Correct