166k views
0 votes
A journal entry containing more than one debit or more than one credit is called?

A. T-account
B. Compound entry
C. Double entry
D. Transaction

User YBS
by
7.8k points

1 Answer

5 votes

Final answer:

A journal entry with multiple debits or credits is known as a Compound entry, which is used when a single transaction affects several accounts.The correct option is B.

Step-by-step explanation:

A journal entry containing more than one debit or more than one credit is called a Compound entry. In accounting, a compound entry refers to a transaction that affects several accounts, requiring multiple debits and/or credits within a single journal entry. This is a common practice when a single business transaction impacts multiple accounts, and it simplifies recording such transactions in the company's ledger.

User Blake
by
8.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.