Which of the Following Statements Is CORRECT

question 34

Multiple Choice

Which of the following statements is CORRECT?

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

---

Definitions:

Serious Intent

A legal concept indicating that a party has a genuine and earnest intention to enter into a binding contract.

Angry

A strong feeling of displeasure or hostility, often resulting from frustration, injustice, or threat.

Requirement Contract

A requirement contract is a legal agreement in which one party agrees to purchase all its needs for a specific good or service from the other party.

Output Contract

An agreement in which a seller agrees to sell all of the production to a particular buyer, who agrees to buy it.